NCLT Chennai Admits Insolvency Plea Filed By Wootu Nutrition Against Itself

The National Company Law Tribunal at Chennai has admitted an insolvency petition filed by Wootu Nutrition Private Limited, a Chennai-based chain of diet and nutrition clinics, initiating the Corporate Insolvency Resolution Process against the company.

A coram of Judicial Member Sanjiv Jain and Technical Member Venkataraman Subramaniam held:

“This Tribunal is satisfied that there is a default in the repayment of debt which is more than the threshold of Rs. 1.0 Crore and the petition filed under Section 10 is complete with all the necessary information.”

Wootu Nutrition Private Limited, a Chennai based chain of diet and nutrition clinics, filed an insolvency petition through its Director, Mani Geetha Priya, seeking initiation of CIRP.

The company attributed its financial distress to COVID-19-related revenue losses, franchise payouts, a sharp revenue decline following heavy rainfall and resulting cash-flow constraints. This led to delayed salaries, overdue EMIs, unpaid rents and closure of branches. Efforts to raise funds and restructure the business also failed.

As on March 31, 2025, the company had ₹7.56 crore in outstanding liabilities against assets worth ₹1.62 crore. Its shareholders approved the initiation of CIRP on November 10, 2025, followed by a Board resolution on November 13, 2025. The company proposed L.K Sivaramakrishnan as the Interim Resolution Professional.

The Tribunal observed that the company had filed the requisite financials and documents, including the shareholders' and Board resolutions approving the CIRP. It also noted that the recall, default and demand notices showed that the loans availed by the company were genuine.

Referring to the NCLAT's decision in Unigreen Global Private Limited v. Punjab National Bank, the Bench observed that where a Section 10 application is complete and the corporate applicant is not ineligible, the Adjudicating Authority is required to admit it.

Noting that the petition was complete and that the company was not hit by any of the disqualifications under Section 11 of the IBC, the Tribunal held:

".we are of the view that this Company petition is required to be admitted u/s 10 of the Code. “

Accordingly, the Tribunal admitted the Section 10 petition and initiated CIRP against Wootu Nutrition Private Limited. Mr. L.K. Sivaramakrishnan was appointed as the IRP.

For Petitioner: Advocate Vedhavel