# in the matter of Tecpro Systems Ltd. CA No. (IB)-197-PB-2017

> NCLT judgment dated 2017-08-07. Citation: TCN-2017-NCLT-00657. Edelweiss Assets Reconstruction Company Ltd, acting as the Financial Creditor, filed an…

- **Court:** NCLT
- **Order date:** 7 Aug 2017
- **Citation:** TCN-2017-NCLT-00657
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tecpro-systems-ltd-ca-no-ib-197-pb-2017-b23ee39e

## Summary

### Background

Edelweiss Assets Reconstruction Company Ltd, acting as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against Tecpro Systems Limited, the Corporate Debtor. The Financial Creditor filed the petition as the Trustee of EARC Trust SC-124 and Trust. The Financial Creditor claimed that the Corporate Debtor defaulted on financial debts granted by State Bank of India (SBI), the predecessor in interest of the Financial Creditor. The debts included working capital facilities and a short-term loan.

## Facts

Edelweiss Assets Reconstruction Company Ltd., acting as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Tecpro Systems Limited, the Corporate Debtor. The Financial Creditor claimed default on financial debts originally advanced by State Bank of India (SBI) to the Corporate Debtor. These debts included working capital facilities of Rs. 2125 crores under a Working Capital Consortium Agreement dated 2013-04-26, later renewed and enhanced to Rs. 2350 crores on 2013-08-07, and a short-term loan of Rs. 150 crores under an agreement dated 2014-02-25. The debt was assigned to the Financial Creditor through assignment agreements executed between 2015-03-23 and 2017-02-28. The total amount in default was Rs.

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has proved by overwhelming evidence that default has occurred, …

**Ratio:** Section 3(11) and (12) of the Insolvency and Bankruptcy Code, 2016 define 'debt' and

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**Reasoning:** The court perused the record and found that the Financial Creditor had submitted

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**Interpretation:** The court interpreted Section 3(11) and (12) and Section 7(3)(a) and (5) of the

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**Application:** In this case, the court applied the ratio to the facts by examining the

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** Edelweiss Assets…
- **Respondents:** Tecpro Systems…
- **Advocates:** Vaijayant P…; Mish…; +4 more

## Timeline

- **2013-04-26 — Working Capital…**: Working capital facilities of Rs. 2125 crores were granted under the Working Capital…
- **2013-08-07 — Renewal and Enhancement of Working Capital…**: Working capital facilities were…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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