# In the matter of Stera Engineering (India) Private Limited

> NCLT judgment dated 2024-03-07. Citation: TCN-2024-NCLT-02167. The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 7 Mar 2024
- **Citation:** TCN-2024-NCLT-02167
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stera-engineering-india-private-limited-1ce64050

## Summary

### Background

The case involves an application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, by Stera Engineering (India) Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The company defaulted on financial obligations to its Financial Creditors and Operational Creditors. The Corporate Applicant's entire capital was lost, and no business was carried on for over a year. The applicant preferred this application to initiate CIRP against itself.

## Facts

Stera Engineering (India) Private Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The company, incorporated on 10.09.2008, defaulted on financial obligations to its Financial Creditors and Operational Creditors. The total default amount was Rs.19,54,27,845/-. The company's entire capital was lost, and no business was conducted for over a year. A loan agreement dated 04.01.2019 with Stera Group OY for 0.3 Million Euro was in default. The company also defaulted on repayments to Finnish Fund for Industrial Corporation Ltd and received a demand notice from the Income Tax Department, which imposed a penalty of Rs.40,00,000/-. The shareholders passed a special

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## Issues and analysis

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

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

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**Reasoning:** The Tribunal found that the Corporate Applicant had defaulted on its financial

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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 Tribunal applied Section 10 to the facts of the case, noting the debt and

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Mr.Subhang…
- **Respondents:** STERA ENGINEERING…

## Timeline

- **2008-09-10 — Incorporation of…**: Stera Engineering (India)…
- **2019-01-04 — Loan Agre…**: The Corporate Applicant entered into a Loan Agreement with Stera Group OY for 0.3 Million…

## 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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