# In the matter of Prince SWR Systems Pvt. Ltd. {I.A. 2729-2021 in C.P. No. (IB) 4345-MB-2019]

> NCLT judgment dated 2023-09-15. Citation: TCN-2023-NCLT-01594. The case involves an application filed by Standard Chartered Bank against Piyush Gangji Chheda,…

- **Court:** NCLT
- **Order date:** 15 Sept 2023
- **Citation:** TCN-2023-NCLT-01594
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/prince-swr-systems-pvt-ltd-ia-2729-2021-in-cp-no-ib-4345-mb-2019-0f78efed

## Summary

### Background

The case involves an application filed by Standard Chartered Bank against Piyush Gangji Chheda, Rupal Piyush Chheda, Harshvardhan Piyush Chheda, Amit Chandrashekhar Poddar, and M/s. Prince SWR Systems Pvt. Ltd. The application pertains to the assignment/transfer/sale of the trademark 'Prince Mumbai India' in favor of Respondent Nos. 1 and 2, which the applicant claims was done improperly and in violation of the Insolvency and Bankruptcy Code, 2016. The applicant seeks to declare the assignment void, restore the trademark to the Corporate Debtor, and punish the erstwhile directors for violating Section 14 of the IBC, which deals with the imposition of a moratorium.

## Facts

Standard Chartered Bank, a multinational bank, provided credit facilities to M/s. Prince SWR Systems Pvt. Ltd. (Corporate Debtor). The Corporate Debtor defaulted on these facilities, leading the bank to file a company petition. CIRP was initiated against the Corporate Debtor on April 16, 2021. An IRP was appointed, later replaced by Respondent No. 4. The Corporate Debtor was in the business of manufacturing PVC pipes and fittings under the trademark 'Prince Mumbai India' since April 16, 1987. On December 19, 2020, the Corporate Debtor entered into a Deed of Assignment with Respondent Nos. 1 and 2, transferring the trademark for Rs. 50,000. On June 8, 2021, after the CIRP initiation, Respondent No. 3 issued a No Objection Letter for the trademark transfer. The applicant

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## Issues and analysis

### Issue 1: Whether the assignment/transfer/sale of the Trademark “Prince Mumbai India' in favour of the …

**Ratio:** Section 14 of the IBC imposes a moratorium prohibiting the transfer, encumbering,

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**Reasoning:** The court reasoned that the transfer of the trademark occurred after the moratorium was

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**Interpretation:** Section 14 of the IBC is interpreted to mean that any transfer of assets by the

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**Application:** The court applied the ratio to the facts by finding that the transfer of the

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Standard Chartered…
- **Respondents:** M/s. Prince SWR…; Piyush Gangji…

## Timeline

- **1987-04-16 — Corporate Debtor's…**: Prince SWR Systems Pvt. Ltd. started business…
- **2020-12-19 — Deed of Ass…**: Corporate Debtor entered into a Deed of Assignment with Respondent Nos. 1 and 2, agreeing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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