# In the matter of Bhotika Trade & Services Pvt. Ltd. vs. Avinash EM Projects Pvt. Ltd. I.A. No. 345 of 2023 in Company Appeal (AT) (Ins.) No. 83 of 2023

> NCLAT judgment dated 2023-04-24. Citation: TCN-2023-NCLAT-00584. The appeal was filed against the order dated 14.11.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 24 Apr 2023
- **Citation:** TCN-2023-NCLAT-00584
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bhotika-trade-services-pvt-ltd-vs-avinash-em-projects-pvt-ltd-ia-no-345-of-2023-0d2b83a4

## Summary

### Background

The appeal was filed against the order dated 14.11.2022 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court-II), which rejected the appellant's Section 9 application because the claim was less than the threshold prescribed under Section 4 of the IBC. The appellant claimed Rs.1,61,12,474.86, including interest.

## Facts

Bhotika Trade & Services Pvt. Ltd. filed a Section 9 application claiming Rs. 1,61,12,474.86, including interest. The Adjudicating Authority rejected the application because it considered the principal amount to be less than 1 crore, as there was no agreement regarding interest. The appellant argued that letters from the Corporate Debtor, Avinash EM Projects Pvt. Ltd., confirmed the debit balance, including interest. The letters dated 15.03.2017 and 20.02.2020 were presented as evidence. The respondent acknowledged the letters were issued in the normal course of business. The Adjudicating Authority's decision was based on the view that the interest could not be included in the claim without an agreement. The appellant relied on a previous judgment of the Tribunal

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the Section 9 application filed by the …

**Ratio:** The order of the Adjudicating Authority rejecting the application cannot be sustained

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**Reasoning:** The Tribunal found that there was material on record, specifically the letters from the

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**Interpretation:** The interpretation of the law suggests that if there is sufficient evidence to

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**Application:** In this case, the letters from the Corporate Debtor served as sufficient

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Bhotika Trade &…
- **Respondents:** Avinash EM…

## Timeline

- **2022-11-14 — Order by Adjudicating…**: The Adjudicating Authority passed an order rejecting the Section 9 application filed by…
- **2023-04-24 — Appeal H…**: The Tribunal heard the learned…

## 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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