Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(NCLT) 1884

NATIONAL COMPANY LAW TRIBUNAL
Jyoti Kumar Tripathi, Judicial Member, Ravichandran Ramasamy, Technical Member
VANATHI EXPORTS PRIVATE LIMITED – Appellant
Versus
Indian Bank – Respondent
CP(IBC)/140(CHE)/2023

Advocates:
For the Appellants/Petitioners: R. Chandramohan, Rohan Rajasekaran, Ashlin Christo
For the Respondents: C. Ramaiah

Under Section 10 of the Insolvency and Bankruptcy Code, 2016, if an application by a Corporate Debtor is complete and the applicant is not ineligible under Section 11, the Adjudicating Authority is bound to admit the application, regardless of pending recovery proceedings before other forums.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 10 - Initiation of Corporate Insolvency Resolution Process (CIRP) by Corporate Debtor - Applicant must comply with Section 10(3) requirements including furnishing books of account, financial statements, and board/shareholder resolutions - Adjudicating Authority is bound to admit a complete application if the corporate debtor is not ineligible under Section 11 of the Code.

(B) Insolvency and Bankruptcy Code, 2016 - Pendency of recovery proceedings or SARFAESI action does not bar the initiation of CIRP under the Code - The Code is a comprehensive legislation for the collective resolution of insolvency.

Facts of the case:
The Applicant, a private limited company, sought to initiate CIRP under Section 10, citing an inability to service debts aggregating to Rs. 8,44,57,904/-. Several financial and operational creditors opposed the application, highlighting existing recovery proceedings and the sale of secured assets.

Findings of Court:
The Tribunal found that the Applicant had fulfilled all statutory requirements under Section 10 and demonstrated a clear default as defined under the Code. The opposition by creditors based on pending recovery actions was rejected as legally insufficient to bar admission under the Code.

Issues: (i) Whether the application satisfies the requirements of Section 10 of the Code; (ii) Whether financial debt and default have been established; (iii) Whether pendency of other recovery proceedings warrants rejection of the application.

Ratio Decidendi: Where an application under Section 10 is complete and the applicant is not ineligible under Section 11, the Adjudicating Authority is bound to admit the application, as the Code provides a collective mechanism for insolvency resolution independent of other pending recovery measures.

Result: Application admitted; CIRP initiated.

ATTENDANCE CUM ORDER SHEET OF THE HEARING OF NATIONAL COMPANY LAW TRIBUNAL, CHENNAI BENCH, HELD ON 02.04.2026 AT 10.30 A.M. THROUGH VIDEO CONFERENCING:

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PRESENT: SHRI. JYOTI KUMAR TRIPATHI, HON'BLE MEMBER (JUDICIAL)

SHRI. RAVICHANDRAN RAMASAMY, HON'BLE MEMBER (TECHNICAL)

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APPLICATION NUMBER : --

PETITION NUMBER : CP(IB)/140(CHE)2023

NAME OF THE PETITIONER : M/s. Vanathi Exports Pvt Ltd

NAME OF THE RESPONDENT(S) : --

UNDER SECTION : Sec 10 Rule 7 of IBC, 2016

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ORDER

Present: Ld. Counsel Mr.Rohan Rajasekaran for the Petitioner.

Vide separate order pronounced in open court, CP(IB)/140/CHE/2023 is Allowed.

IN THE NATIONAL COMPANY LAW TRIBUNAL

DIVISION BENCH – II, CHENNAI

CP(IBC)/140(CHE)/2023

(Filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 r/w Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016)

In the matter of Vanathi Exports Private Limited

VANATHI EXPORTS PRIVATE LIMITED,

Represented by its Director P. Nitish Kumar,

Having its Registered Office at

No.3/1, 2nd Floor, Flat No.2/5,

Ramachandra Road, T. Nagar, Chennai — 600 017.

... Applicant/ Corporate Debtor

Order Pronounced on 02.04.2026

CORAM

SHRI. JYOTI KUMAR TRIPATHI, MEMBER (JUDICIAL)

SHRI. RAVICHANDRAN RAMASAMY, MEMBER (TECHNICAL)

Present:

For Applicant: R. Chandramohan, Rohan Rajasekaran & Ashlin Christo, Advocates

For Indian Bank: C. Ramaiah, Advocate

ORDER

(Heard through hybrid mode)

The present application has been filed by Vanathi Exports Private Limited (“the Corporate Debtor”) under Section 10 of the Insolvency and Bankruptcy Code, 2016 (“the Code”), read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against it. The application has been filed through one of its Directors and authorised signatory, Mr. P. Minish Kumar, by a Resolution of the Board of Directors of the Corporate dated 22.04.2023 and shareholders/ members resolution dated 22.04.2023 have been duly annexed Annex VII (c) and VII (d) respectively.

2. SUBMISSIONS OF THE APPLICANT:

2.1. The Corporate Debtor is a private company incorporated under the provisions of the Companies Act, 1956. Part-I of the application sets out the particulars of the Corporate Debtor i.e. Vanathi Exports Private Limited. It was incorporated on 15.12.2017 having its Office at No.3/1, 2nd Floor, Flat No.2/5, Ramachandra Road, T. Nagar, Chennai – 600017, with Authorized Capital as Rs.25,00,000/-. Part-II of the application sets out the particulars of the Proposed Interim Resolution Professional viz., Mr. N. Kumar having Reg. No. IBBI/IPA-001/IP-P00724/2017-2018/11254. Part-III of the application lists the particulars of the Financial / Operational Creditors (Annexure VI), amount of debt in default as Rs.8,44,57,904/- (Annexure VI) and date of default as 25.08.2021 and 27.09.2022 set out in Annexure I(b).

2.2. It is submitted that the Corporate Debtor had availed various financial facilities from several financial creditors, including Indian Bank, Fullerton India Credit Company Limited, Capital Float, and Aditya Birla Finance Limited, for the purpose of carrying on its business operations.

2.3. It is submitted that the loan facilities were sanctioned and disbursed by the aforesaid financial creditors under various loan agreements and loan specification letters. In particular, loan disbursement letters and loan specification documents issued by Capital Float and Fullerton India evidence the financial facilities extended to the Corporate Debtor.

2.4. It is further submitted that due to adverse financial conditions and severe cash flow const

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2026 Supreme(Online)(NCLT) 1884

NATIONAL COMPANY LAW TRIBUNALJyoti Kumar Tripathi, Judicial Member, Ravichandran Ramasamy, Technical MemberVANATHI EXPORTS PRIVATE LIMITED – AppellantVersusIndian Bank – RespondentCP(IBC)/140(CHE)/2023

Under Section 10 of the Insolvency and Bankruptcy Code, 2016, if an application by a Corporate Debtor is complete and the applicant is not ineligible under Section 11, the Adjudicating Authority is bound to admit the application, regardless of pending recovery proceedings before other forums.

NATIONAL COMPANY LAW TRIBUNAL
Jyoti Kumar Tripathi, Judicial Member, Ravichandran Ramasamy, Technical Member
VANATHI EXPORTS PRIVATE LIMITED – Appellant
Versus
Indian Bank – Respondent
CP(IBC)/140(CHE)/2023