In re Venus Star Chit Pvt Ltd (NCLT Chennai)
NCLT Chennai held that application u/s. 10 of the Insolvency and Bankruptcy Code admitted for initiation of Corporate Insolvency Resolution Process [CIRP] against Corporate Applicant since there is a default in the repayment of debt and the petition filed u/s. 10 is complete.
Facts- The Company Venus Star Chit Private Limited, the Petitioner/Corporate Applicant has filed this petition under Section 10 of Insolvency and Bankruptcy Code, 2016 r/w Rule 7 of IBBI (Application to Adjudicating Authority) Rules, 2016 for initiating insolvency proceedings against the Corporate Applicant i.e. Venus Star Chit Private Limited.
Conclusion- Hon’ble National Company Law Appellate Tribunal (hereinafter, Hon’ble NCLAT), New Delhi in M/s. Unigreen Global Private Limited vs. Punjab National Bank and others (Company Appeal (AT) (Insolvency) 81/2017) has held that if an application under Section 10 is complete and in absence of any ineligibility of Corporate Applicant, the Adjudicating Authority is bound to admit the application.
Held that there is a default in the repayment of debt and the petition filed under Section 10 is complete with all the necessary information. Further, the Corporate Applicant is not ineligible to make petition as per Section 11 of IBC, 2016. Therefore, we are of the view that this Company petition is required to be admitted u/s 10 of the Code. We order accordingly.
