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

> NCLAT judgment dated 2019-12-12. Citation: TCN-2019-NCLAT-00028. M/s. Consolidated Construction Consortium Limited (Operational Creditor) filed an application…

- **Court:** NCLAT
- **Order date:** 12 Dec 2019
- **Citation:** TCN-2019-NCLAT-00028
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ns-rangachari-vs-consolidated-construction-consortium-ltd-ca-a65bbc5d

## 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, identified as the Operational Creditor, initiated proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC) against Hitro Energy Solutions Private Limited. The Adjudicating Authority admitted the application on December 6, 2018. N.S. Rangachari, a shareholder of Hitro Energy Solutions Private Limited, filed an appeal against this order. The appellant argued that the Section 9 application was not maintainable because Hitro Energy Solutions Private Limited was not the 'Corporate Debtor' of the Operational Creditor. Purchase orders were issued by Consolidated Construction Consortium Limited for the supply of materials to Hitro Energy Solutions, a separate entity. The appellant also contended that neither goods

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## Issues and analysis

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

**Ratio:** The ratio is based on the interpretation of Section 5(20) and Section 5(21) of the

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**Reasoning:** The court reasoned that the application under Section 9 was not maintainable because the

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**Interpretation:** The interpretation revolves around the strict definition of 'Operational

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**Application:** In this specific case, the court applied the ratio by determining that

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** N. S. Rang…
- **Respondents:** Hitro Energy…; Consolidated…
- **Advocates:** K. Ku…; Y.Lok…; +2 more

## Timeline

- **2018-12-06 — Impugned…**: The Adjudicating Authority (National Company Law Tribunal), Chennai, admitted the…
- **2019-01-01 — Appeal F…**: Mr. N.S. Rangachari, Shareholder of ‘M/s. Hitro Energy Solutions Private Limited',…

## 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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