# In the matter of Sunpower Solar Technick Pvt. Ltd.

> NCLT judgment dated 2023-08-09. Citation: TCN-2023-NCLT-02113. The case involves an application (IA No. 296/2021) filed by the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 9 Aug 2023
- **Citation:** TCN-2023-NCLT-02113
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sunpower-solar-technick-pvt-ltd-092ea0c5

## Summary

### Background

The case involves an application (IA No. 296/2021) filed by the Resolution Professional (RP) of Sunpower Solar Technick Private Limited, the Corporate Debtor (CD), in the Corporate Insolvency Resolution Process (CIRP) initiated under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The CIRP was triggered by a petition from the financial creditor, Shriram City Union Finance Limited. The RP sought directions under Section 66 of the IBC to compel respondents, including former directors, to contribute to the assets of the CD due to fraudulent transactions and diversion of funds. The RP faced non-cooperation from the respondents in providing financial data and discovered questionable transactions through forensic audits.

## Facts

Shriram City Union Finance Limited initiated Corporate Insolvency Resolution Process (CIRP) against Sunpower Solar Technick Pvt Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The National Company Law Tribunal (NCLT), Hyderabad Bench, ordered CIRP on 13 November 2019 and appointed an Interim Resolution Professional (IRP), later confirmed as Resolution Professional (RP). The RP discovered that the Corporate Debtor (CD) engaged in fraudulent transactions and diversion of funds. Key findings included: the CD's financial statements did not reflect a true state of affairs; the CD was used to route funds to other entities; there was a lack of supporting documentation for debenture liabilities; funds were diverted to related parties; questionable gold

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## Issues and analysis

### Issue 1: Whether the respondents should be directed to contribute to the assets of the Corporate Debtor …

**Ratio:** Section 66 of the IBC allows the adjudicating authority to direct individuals who

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**Reasoning:** The court considered the forensic audit findings, which revealed significant financial

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**Interpretation:** Section 66 is interpreted to mean that if fraudulent transactions are

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**Application:** Based on the evidence presented, the court concluded that the respondents were

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## Parties

- **Judges:** TELAPROLU…; SH. CHARAN…
- **Appellants:** P. Sriram,…
- **Respondents:** Sunpower Solar…; Kasturi S…

## Timeline

- **2019-11-13 — CIRP Ord…**: NCLT ordered Corporate Insolvency Resolution…
- **2019-11-18 — Receipt of CI…**: IRP received the CIRP…

## 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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