NCLT Mumbai allows Section 10 IBC application of Influx Agrotech Private Limited and commences CIRP

Overview of the proceedings

The National Company Law Tribunal, Mumbai Bench, admitted a petition filed by Influx Agrotech Private Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016 (“Code”) for initiation of its own Corporate Insolvency Resolution Process (CIRP). The company, acting as a Corporate Applicant, asserted that ongoing financial distress and repeated defaults rendered it incapable of honouring its debt obligations, thereby triggering “default” within the meaning of the Code.

The Tribunal, after reviewing the statutory compliances, supporting documents, and the nature of continuous defaults, concluded that the requirements of Section 10 were fully satisfied and proceeded to order commencement of CIRP, impose a moratorium under Section 14, and appoint an Interim Resolution Professional (IRP).

Corporate profile and indebtedness

Incorporation and business activity

Influx Agrotech Private Limited is a company incorporated under the provisions of the Companies Act, 1956 and is registered with the Registrar of Companies, Maharashtra. It bears Corporate Identification Number (CIN) UO1122PN201OPTC135694 and was incorporated on 02/03/2010.

As reflected in the auditor’s report, its main line of business is manufacturing and trading of Organic Agriculture Inputs. The company’s registered office is located at:

F 1-6, T 5, Durwankur CTS 587 213, Paranjape Road, Apte Road, Pune – 411 004.

The Authorised Share Capital stands at ₹1,00,000 and the Paid-up Share Capital is also ₹1,00,000.

Aggregate financial default

In Part III of the company petition, the Corporate Applicant disclosed that the total financial debt and the amount claimed to be in default came to ₹2,55,31,541 (Rupees Two Crores Fifty-five Lacs Thirty-one Thousand Five hundred and forty-one Only). This amount was asserted to be due and payable, and unpaid, thereby crossing the minimum default threshold prescribed in Section 4(1) of the Code at the relevant time.

Background of financial distress and continuing default

Initial statutory defaults and borrowing pattern

The Corporate Applicant submitted that its financial difficulties were not isolated but sustained over several years. The sequence of events included:

  • The first significant default occurred in March 2014, when the company failed to discharge its VAT and CST dues.
  • In order to sustain operations, the company later availed the following borrowings:
    • Loan from Tata Capital Housing Finance Limited in January 2016.
    • Loan from Urban Landscape Private Limited in December 2016.
    • Loan from Tanuja Chamkire in April 2022.

Despite infusion of funds through these borrowings, the company was unable to restore financial stability.

Persistent non-payment of statutory and trade dues

The material placed before the Tribunal indicated that even after receiving financial support, the Corporate Applicant:

  • Continued to default on statutory dues such as VAT, CST, and Income Tax multiple times from 2018 to 2022.
  • Failed to clear commercial dues owed to Krishna Agri Sciences and TP Exports.

The Corporate Applicant argued that these repeated and ongoing defaults demonstrated a clear inability to meet its financial commitments and hence constituted “default” for the purposes of the Insolvency and Bankruptcy Code, 2016. On that basis, the company sought admission of its petition under Section 10 and commencement of CIRP.

Along with the petition, the Corporate Applicant proposed Mr. Udaykumar Bhaskar Bhat (Registration No.