TaxTMI Login
🎉 Festive Offer: Flat 15% off on all plans! →⚡ Don’t Miss Out: Limited-Time Offer →
TaxTMI 
Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Corporate Insolvency Application Rejected Due to Sufficient Income</h1> <h3>Vyomit Shares Stock And Investments Pvt. Ltd. Versus Securities and Exchange Board of India (SEBI)</h3> The National Company Law Tribunal rejected the Corporate Applicant's application for initiating Corporate Insolvency Resolution Process under Section 10 ... Admissibility of petition - Initiation of Corporate Insolvency Resolution Process - Corporate Debtor - eligibility of Corporate Debtor for filing an application u/s 10 of Insolvency & Bankruptcy Code 2016 - HELD THAT:- From the record, it appears that there is income and profit generated by the Company in the financial year 31st March, 2017, we are not inclined to interfere with the impugned order. Appeal dismissed. Issues:1. Rejection of application for initiation of Corporate Insolvency Resolution Process under Section 10 of the Insolvency & Bankruptcy Code, 2016.2. Interpretation of the term 'Operational Creditor' under the I&B Code.3. Consideration of income and profit generated by the Company for determining eligibility for insolvency proceedings.Analysis:1. The Corporate Applicant filed an application under Section 10 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process. The National Company Law Tribunal rejected the application on the grounds that the Corporate Debtor was earning sufficient income, indicating no reason for insolvency proceedings.2. The Respondent contended that the Securities and Exchange Board of India (SEBI) should be considered an Operational Creditor. Referring to a previous judgment, the Appellate Tribunal clarified the definition of 'Operational Debt' as including statutory dues like Income Tax and Value Added Tax, which have a direct nexus with the operation of the Company.3. The Appellant argued that the Company was in a loss and unable to pay the amount. However, based on the Company's income and profit in the financial year ending March 31, 2017, the Tribunal declined to interfere with the impugned order, ultimately dismissing the appeal without costs.This judgment highlights the importance of financial viability in determining eligibility for insolvency proceedings, clarifies the scope of 'Operational Debt' and 'Operational Creditor' under the I&B Code, and emphasizes the relevance of a Company's financial status in such proceedings.
TaxTMI 
