Suppression of material facts barred a corporate debtor's insolvency application after prior winding-up and liquidation proceedings were undisclosed.

A corporate debtor's application under section 10 of the Insolvency and Bankruptcy Code was found to be filed after suppression of material facts, because it omitted that the company had already been wound up by the High Court and that the Official Liquidator had been directed to proceed with liquidation. That nondisclosure was material since section 11(d) bars a corporate debtor against whom a liquidation order has been made from initiating the corporate insolvency resolution process, and Rule 10(2) required disclosure of the winding-up proceedings. The omission was treated as suppression of material facts and conduct attracting section 77(a), rendering the application not maintainable.

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Issues: Whether the corporate debtor had filed the application under section 10 of the Insolvency and Bankruptcy Code, 2016 after suppressing material facts known to be material.

Analysis: The application under section 10 was filed without disclosing that the corporate debtor had already been wound up by the High Court and that the Official Liquidator had been directed to proceed expeditiously with liquidation. The omission was held to be material because section 11(d) of the Insolvency and Bankruptcy Code, 2016 bars a corporate debtor in respect of whom a liquidation order has been made from initiating corporate insolvency resolution process. The disclosure duty under Rule 10(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 required immediate notification of the winding-up petition. The omission was treated as suppression of material facts and as conduct attracting section 77(a) of the Insolvency and Bankruptcy Code, 2016.

Conclusion: The application was filed after suppression of material facts and was not maintainable.

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