Akshay Kumar Rout Vs Indo Laminates Pvt. Ltd (NCLT Delhi)
NCLT Delhi held that CIRP application under section 7 of the Insolvency and Bankruptcy Code dismissed as the applicant is primarily seeking to recover its dues, rather than facilitating the resolution of the Corporate Debtor, who is solvent and operational.
Facts- The present application under Section 7 of the Insolvency and Bankruptcy Code, 2016 has purportedly been filed by Mr. Akshay Kumar Rout, Prop. of Jagannath Traders, seeking initiation of CIRP against M/s. Indo Laminates Pvt. Ltd., the Corporate Debtor herein for the alleged default amount of Rs. 1,13,45,000/- as on 03.05.2025.
Conclusion- Held that there is no dispute that the Respondent Company is a solvent company who had a long-standing business relationship with the Applicant. There has been no prior record of financial delinquency or breach of contractual obligations by the Respondent vis-à-vis the Applicant. It is because of the fire incident which caused a great loss to the company, the Respondent could not repay the amount due to the Applicant. The Respondent was prevented by force majeure circumstances and therefore, could not pay the default amount.
Held that the Applicant has not come with clean hands and the sequence of actions and overall conduct suggest that the Applicant is primarily seeking to recover its dues, rather than facilitating the resolution of the Corporate Debtor, who is solvent and operational. We are therefore not inclined to entertain this application filed under Section 7 of the IBC, and accordingly, the present application stands dismissed.
