Goa Food & Pharma Pvt Ltd vs Respondent
- CitationCompany Appeal (AT) (Insolvency) No. 1085 of 2025
Ratio decidendi
The rule this decision rests on
Where a company has lost its substratum, having ceased operations since 2001, owns no assets or funds, and has no maintained accounts or registered office, the Adjudicating Authority may decline to admit an application under Section 10 of the Insolvency and Bankruptcy Code, as no object would be served by its admission; the absence of a going-concern status alone is not the ground, rather the absence of any purpose for admission in these circumstances.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Goa Food & Pharma Pvt. Ltd. ...Appellant Versus ---- ...Respondent
Present: For Appellant : Mr. Aroon Menon, Advocate. For Respondent :
ORDER
(Hybrid Mode)
28.07.2025: Heard learned counsel for the Appellant. This appeal has
been filed against order dated 26.05.2025 by which order the Adjudicating
Authority has rejected Section 10 application filed by the Appellant.
2. Learned counsel for the Appellant challenging the order submits that it
is not necessary that a company is going concern only then Section 10
application can be admitted.
3. We have considered the submissions of the Appellant and perused the
record.
4. In Para 10 of the judgment, the Adjudicating Authority has returned
following finding:
"10. From the Application and from the arguments advanced by the Applicant's counsel, it is apparent that the company has lost its substratum, as the CD is
Cont'd.../ not operation since 2001, owns no assets, funds, investment, does not have its accounting and statutory record, the last audited accounts of the Corporate Debtor are available only till the year 2001 and thereafter no accounts have been maintained by the Corporate Debtor as its registered office was sold by the Financial Creditor exercising their rights as available under law, thereafter no registered office of the Corporate Debtor is maintained, registered office address of the Corporate Debtor has never been modified with MCA and continues to be at the same address, which was sold by the Financial Creditor, there is very poor corporate governance as the audited financials are not available since the year 2000-2001."
5. When the company is not in operation since 2001 and owns no assets,
funds, investment, we fail to see what shall be object served in admitting
Section 10 application. We are of view that the Adjudicating Authority has
rightly exercised its jurisdiction in not accepting Section 10 application. We
do not find any good ground to intervene. Appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) Archana/nn
Comp. App. (AT) (Ins.) No. 1085 of 2025 2 of 2
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free