# In the matter of Neutrino Power Systems Private LImited CP (IB) No. 125-10-HDB-2017

> NCLT judgment dated 2018-01-22. Citation: TCN-2018-NCLT-01915. The case involves a company petition filed by Neutrino Power Systems Private Limited under…

- **Court:** NCLT
- **Order date:** 22 Jan 2018
- **Citation:** TCN-2018-NCLT-01915
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/neutrino-power-systems-private-limited-cp-ib-no-125-10-hdb-2017-a784bf40

## Summary

### Background

The case involves a company petition filed by Neutrino Power Systems Private Limited under Section 10 of the IBC Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against itself. The company owed Rs.7,34,98,028.59 to the Financial Creditor, Bank of Bahrain & Kuwait, as of 30.06.2016. The Respondent (Financial Creditor) opposed the petition, alleging that it was filed to stall recovery proceedings initiated by them before the Debts Recovery Tribunal (DRT) and that the Petitioner had siphoned off funds. The Corporate Debtor admitted to the default.

## Facts

Neutrino Power Systems Private Limited (formerly SLG Power Controls Private Limited) filed a company petition under Section 10 of the IBC, 2016, seeking to initiate CIRP against itself. The company's authorized share capital was Rs.2,50,00,000/-, and paid-up capital was Rs.1,32,76,750/-. The company owed Rs.7,34,98,028.59 to Bank of Bahrain & Kuwait as of 30.06.2016. The Financial Creditor opposed the petition, alleging that it was a ploy to stall recovery proceedings before the DRT. The Financial Creditor had extended credit facilities to the Petitioner, including sales bill discounting and letter of credit, secured by an exclusive charge on assets and personal guarantees. The Petitioner allegedly violated the terms of the credit facilities, failed to repay the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor met the requirements for initiating CIRP under Section 10 of the IBC, …

**Ratio:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has committed a

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**Reasoning:** The Adjudicating Authority noted that the Corporate Debtor admitted to the default of

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**Interpretation:** Section 10 of the IBC provides a mechanism for a corporate debtor to initiate

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**Application:** In this case, the Corporate Debtor admitted to the default and submitted the

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## Parties

- **Judges:** Rajeswara Rao…; Ravikumar…; +1 more
- **Respondents:** M/s Neutrino…; Bank of Bahrain &…

## Timeline

- **2016-06-30 — Outstanding…**: Outstanding amount of Rs.7,34,98,028.59/- owed by the Petitioner Company to the Financial…
- **2017-07-10 — Board Me…**: Board of Directors of Neutrino Power Systems Private Limited resolved to authorize Mr.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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