# In the matter of Veesons Energy Systems Pvt. Ltd. and Ors. CP 510-76-292-264-(IB)-CB-2017

> NCLT judgment dated 2017-06-19. Citation: TCN-2017-NCLT-00796. The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 19 Jun 2017
- **Citation:** TCN-2017-NCLT-00796
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/veesons-energy-systems-pvt-ltd-and-ors-cp-510-76-292-264-ib-cb-2017-432a35ee

## Summary

### Background

The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by the Corporate Debtor, M/s. Veesons Energy Systems Pvt Ltd. The Corporate Debtor sought to initiate the Corporate Insolvency Resolution Process (CIRP). However, applications were also filed by Operational Creditors under Section 433 (e) and (f) of the Companies Act, 1956 (presently under Section 9 of the I&B Code, 2016). The Corporate Debtor's debt was classified as Non-Performing Assets (NPA) on 28.06.2015, and Operational Creditors initiated proceedings by issuing Demand Notices under Section 13(2) of the SARFAESI Act. The Financial Creditor, State Bank of

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## Facts

M/s. Veesons Energy Systems Pvt Ltd. filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The application was filed with the National Company Law Tribunal (NCLT), Chennai. Several other petitions were filed by Operational Creditors against the same Corporate Debtor. The Corporate Debtor's debt was classified as Non-Performing Assets (NPA) on 28.06.2015. Operational Creditors had initiated proceedings under the SARFAESI Act, issuing Demand Notices under Section 13(2) and taking symbolic possession of the Corporate Debtor's factory on 18.11.2016. The Financial Creditor, State Bank of India, raised an issue regarding the outstanding debt amount, claiming Rs.61.13 Crores,

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Debtor under Section 10 of the Insolvency and …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016, allows a corporate debtor to

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**Reasoning:** The court considered the application filed by the Corporate Debtor, the petitions filed

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor to initiate CIRP when it

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**Application:** The court applied Section 10 to the facts of the case, finding that the

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## Parties

- **Judges:** CH. MOHD SHARIEF…; B. VIJAYARA…
- **Respondents:** M/s. Veesons…; M/s. Shah & Shah…

## Timeline

- **2015-06-28 — Debt Classifie…**: The Corporate Debtor's debt was…
- **2016-06-21 — Demand Notice…**: Demand Notice dated 21.06.2016 issued under Section 13(2) of the SARFAESI Act by…

## Legal provisions

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

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