# In the matter of Schneider Prototyping India Private Limited

> NCLT judgment dated 2023-10-31. Citation: TCN-2023-NCLT-00946. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 Oct 2023
- **Citation:** TCN-2023-NCLT-00946
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/schneider-prototyping-india-private-limited-65a576a0

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Mr. Pavan Gaur (Operational Creditor) against M/s. Schneider Prototyping India Private Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP) due to a default in payment of Rs. 17,53,06,336/-. The applicant claims this amount is due from unpaid salary, full and final settlement, and valuation of the applicant's India business. The Corporate Debtor contested the application, claiming there were no crystallized operational debts and alleged counterclaims against the applicant.

## Facts

Mr. Pavan Gaur, the applicant, was employed by M/s. Schneider Prototyping India Private Limited, the corporate debtor, under an Employment Agreement effective from 01.04.2012. He was appointed as the Managing Director for a period of five years. The applicant claimed that the corporate debtor defaulted on payments amounting to Rs. 17,53,06,336/-, which included arrears of salary, full and final settlement dues, and valuation of his India business. The applicant issued a demand notice dated 20.06.2018, to which the corporate debtor responded with a notice of dispute, raising allegations. The corporate debtor claimed that there were no admitted debts, and the applicant had siphoned off funds, leading to a forensic audit and criminal proceedings. The applicant submitted

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## Issues and analysis

### Issue 1: Whether there is an “operational debt” as defined in Sec. 5(20) of the Code exceeding the pecuniary …

**Ratio:** The Adjudicating Authority must determine if an operational debt exists and if it exceeds

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**Reasoning:** The Adjudicating Authority considered the applicant's claim and the corporate debtor's

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**Interpretation:** The term 'operational debt' is interpreted as a claim in respect of the

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**Application:** The Adjudicating Authority found that the applicant's claim constituted an

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## Parties

- **Judges:** SH. MANNI…; BINOD KUMAR…
- **Appellants:** Pavan…
- **Respondents:** Schneider…; M/s. Schneider…

## Timeline

- **2012-04-01 — Employment Ag…**: Employment Agreement effective between Pavan Gaur and Schneider Prototyping India Private…
- **2013-09-18 — Business Ag…**: Business Agreement altering the Employment…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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