# In the matter of N.S. Rangachari Vs. Consolidated Construction Consortium CA(AT)(Ins) No. 19 of 2019

> NCLAT judgment dated 2019-12-12. Citation: TCN-2019-NCLAT-00023. M/s. Consolidated Construction Consortium Limited (Operational Creditor) filed an application…

- **Court:** NCLAT
- **Order date:** 12 Dec 2019
- **Citation:** TCN-2019-NCLAT-00023
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ns-rangachari-vs-consolidated-construction-consortium-ca-63e90554

## Summary

### Background

M/s. Consolidated Construction Consortium Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process against M/s. Hitro Energy Solutions Private Limited. The Adjudicating Authority (National Company Law Tribunal), Chennai, admitted the application via an order dated December 6, 2018. Mr. N.S. Rangachari, a shareholder of M/s. Hitro Energy Solutions Private Limited, appealed this decision.

## Facts

Consolidated Construction Consortium Limited, claiming to be an operational creditor, initiated CIRP against Hitro Energy Solutions Private Limited under Section 9 of IBC. The Adjudicating Authority admitted the application. N.S. Rangachari, a shareholder of Hitro Energy Solutions Private Limited, appealed the admission order. The appellant argued that Hitro Energy Solutions Private Limited is not the corporate debtor of the operational creditor. The appellant also submitted that the operational creditor issued purchase orders for supply of material to Hitro Energy Solutions, which is a separate company. The appellant further contended that neither goods nor services were supplied to Hitro Energy Solutions Private Limited. The appellant also argued that the application

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by …

**Ratio:** The application under Section 9 is not maintainable if the alleged corporate debtor is

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**Reasoning:** The court found that Consolidated Construction Consortium Limited acted as a 'Purchaser'

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**Interpretation:** Section 9 of the IBC requires a valid operational debt and a corresponding

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**Application:** Since Consolidated Construction Consortium Limited was a 'Purchaser' and not a

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** N. S. Rang…
- **Respondents:** Hitro Energy…; Consolidated…

## Timeline

- **2014-01-22 — Memorandum of…**: M/s. Hitro Energy Solutions Private Limited prepared a 'Memorandum of Association' to…
- **2013-06-24 — Purchase Order…**: Purchase Orders were issued on 24th June, 2013, and advance cheques were issued for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(20) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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