# in the matter of P K Ores Pvt. Ltd. Vs Tractors India Pvt. Ltd. CA (AT) No. 56-2017

> NCLAT judgment dated 2017-06-01. Citation: TCN-2017-NCLAT-00165. This case involves an appeal filed by P.K. Ores Private Limited (Corporate Debtor) against an…

- **Court:** NCLAT
- **Order date:** 1 Jun 2017
- **Citation:** TCN-2017-NCLAT-00165
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/p-k-ores-pvt-ltd-vs-tractors-india-pvt-ltd-ca-bebabd32

## Summary

### Background

This case involves an appeal filed by P.K. Ores Private Limited (Corporate Debtor) against an order passed by the Adjudicating Authority (National Company Law Tribunal, Kolkata Bench) on April 3, 2017. The Adjudicating Authority had admitted an application filed by Tractors India Private Limited (Operational Creditor) under Section 9 of the Insolvency & Bankruptcy Code (I&B Code) for initiating the Corporate Resolution Process against P.K. Ores Private Limited. The Corporate Debtor contends that the order was passed in violation of the rules of natural justice, without any notice or opportunity to be heard. The Corporate Debtor also claims the existence of a dispute with the Operational Creditor.

## Facts

P.K. Ores Private Limited (Corporate Debtor) faced a corporate insolvency resolution process initiated by Tractors India Private Limited (Operational Creditor) under Section 9 of the Insolvency & Bankruptcy Code, 2016. The Adjudicating Authority (National Company Law Tribunal, Kolkata Bench) admitted the application on April 3, 2017, without providing notice to the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor failed to pay Rs. 9,76,095 despite a notice dated January 17, 2017. The Corporate Debtor argued that there was an 'existence of dispute' regarding the quality of goods supplied by the Operational Creditor, specifically concerning a Caterpillar Engine (CAT 6.6) that was not functioning properly after installation. The Corporate

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority violated the principles of natural justice by admitting the …

**Ratio:** Section 424 of the Companies Act, 2013 mandates that the Adjudicating Authority must

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**Reasoning:** The court found that the Adjudicating Authority admitted the application under Section 9

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**Interpretation:** The interpretation of Section 424 of the Companies Act, 2013, and the

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**Application:** In this case, the Adjudicating Authority's failure to provide notice to P.K.

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## Parties

- **Judges:** S.J. Mukhop…; Balvinder…
- **Respondents:** P.K. Ores Private…; Tractors India…
- **Advocates:** Amit Kumar…; Rishav Ba…; +1 more

## Timeline

- **2016-11-04 — Operational Creditor's…**: Tractors India Private Limited (Operational Creditor) sends a letter to P.K. Ores Private…
- **2016-11-16 — Corporate Debto…**: P.K. Ores Private Limited replies to the Operational Creditor's letter, raising concerns…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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