A Division Bench of the National Company Law Tribunal at Chennai held that when an application under Section 10 of the Insolvency and Bankruptcy Code is deemed complete and the corporate applicant does not stand disqualified by any of caveats of Section 11, the Adjudicating Authority is bound to admit the petition and initiate the Corporate Insolvency Resolution Process (CIRP).
The present petition was filed by Venus Star Chit Pvt. Ltd., under section 10 of the IBC, asserting their default and insolvency.
The petitioner, incorporated on August 14, 2013 had availed an overdraft facility from Tamil Nadu Mercantile Bank which was cleared by December 2019 after which it ceased operations, and disclosed total liabilities…