# In the matter of Ashok Sehgal Suspended Director of UEE Electrical Engineers Pvt. Ltd. vs. Xylem Water Solutions India Pvt. Ltd.

> NCLAT judgment dated 2025-01-07. Citation: TCN-2025-NCLAT-00281. The case is a Company Appeal (AT) (Insolvency) No. 20 of 2025 before the National Company Law…

- **Court:** NCLAT
- **Order date:** 7 Jan 2025
- **Citation:** TCN-2025-NCLAT-00281
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ashok-sehgal-suspended-director-of-uee-electrical-engineers-pvt-ltd-vs-xylem-wat-1b7100d8

## Summary

### Background

The case is a Company Appeal (AT) (Insolvency) No. 20 of 2025 before the National Company Law Appellate Tribunal, Principal Bench, New Delhi. The appeal involves Ashok Sehgal, the suspended director of UEE Electrical Engineers Pvt. Ltd., as the appellant, and Xylem Water Solutions India Pvt. Ltd. as the respondent. The appellant's counsel submitted that no Operational Debt became due since no payment was received from BUID Company.

## Facts

Ashok Sehgal, the suspended director of UEE Electrical Engineers Pvt. Ltd., has filed an appeal against Xylem Water Solutions India Pvt. Ltd. before the NCLAT. The appellant's counsel argued that no Operational Debt became due because no payment was received from BUID Company. The relevance of this fact is that it forms the basis of the appeal, challenging the existence of an operational debt that would trigger insolvency proceedings. The court has taken cognizance of this submission and has issued notices to the respondent, setting a timeline for reply and rejoinder. The constitution of the Committee of Creditors (CoC) has been temporarily stayed pending further orders.

## Issues and analysis

### Issue 1: Whether an Operational Debt became due from UEE Electrical Engineers Pvt. Ltd. to Xylem Water …

**Ratio:** The ratio is based on the Insolvency and Bankruptcy Code (IBC) provisions regarding the

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**Reasoning:** The court is considering the appellant's submission that no Operational Debt became due

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**Interpretation:** The interpretation involves understanding the definition of 'Operational Debt'

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**Application:** The court will apply the IBC provisions to the specific facts of the case,

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Appellants:** Ashok S…
- **Respondents:** UEE Electrical…; Xylem Water…

## Timeline

- **2025-01-07 — Appellant's Su…**: Appellant's counsel submits that no Operational Debt became due since no payment was…
- **N/A — Issue No…**: Court issues notice to…

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