# in the matter of Schweitzer Systemtek India Pvt. Ltd. TCP No. 1059-NCLT-MAH-2017

> NCLT judgment dated 2017-07-03. Citation: TCN-2017-NCLT-00767. The case involves an application by Schweitzer Systemtek India Private Limited, the Corporate…

- **Court:** NCLT
- **Order date:** 3 Jul 2017
- **Citation:** TCN-2017-NCLT-00767
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/schweitzer-systemtek-india-pvt-ltd-tcp-no-1059-nclt-mah-2017-6236807c

## Summary

### Background

The case involves an application by Schweitzer Systemtek India Private Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). The Corporate Debtor had raised debt from Dhanlaxmi Bank and Standard Chartered Bank. Dhanlaxmi Bank assigned its debt to Phoenix ARC Private Limited. Phoenix ARC is contesting the application, while the Corporate Debtor seeks the imposition of a moratorium under Section 14 of the IBC. The Corporate Debtor's application is under Section 10 of the IBC.

## Facts

Schweitzer Systemtek India Private Limited (Corporate Debtor) filed an application to initiate Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor had raised debt from Dhanlaxmi Bank and Standard Chartered Bank. Dhanlaxmi Bank sanctioned a loan on 2011-12-19, and Standard Chartered Bank sanctioned a loan on 2012-04-17. Dhanlaxmi Bank assigned its debt to Phoenix ARC Private Limited on 2014-03-28. Phoenix ARC Private Limited is contesting the application. The Corporate Debtor's application seeks a moratorium under Section 14 of the IBC. The Corporate Debtor's financial statements show a discrepancy between the liabilities and assets. The Corporate Debtor's balance sheet does not clearly

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## Issues and analysis

### Issue 1: Whether the application under Section 10 of the Insolvency and Bankruptcy Code, 2016 deserves to be …

**Ratio:** Section 10 of the I&BP Code allows a corporate debtor to initiate the corporate

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**Reasoning:** The NCLT found discrepancies in the Corporate Debtor's balance sheet and financial

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**Interpretation:** Section 10 requires the Corporate Debtor to furnish requisite information as

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**Application:** The NCLT applied the principles of Section 10 to the facts of the case,

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## Parties

- **Judges:** M.K. Sh…
- **Respondents:** Schweitzer…; Phoenix Arc…

## Timeline

- **2010-06-05 — Petition…**: The petition was filed invoking Section 10 of…
- **2011-12-19 — Loan Sanctioned by…**: Dhanlaxmi Bank sanctioned a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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