# In the matter of Sudha Electrical vs. Leena Power Tech Engineers Pvt. Ltd.

> Read the full IBC case summary for In the matter of Sudha Electrical vs. Leena Power Tech Engineers Pvt. Ltd.. NCLAT judgment dated 2025-08-08. Citation:…

- **Court:** NCLAT
- **Order date:** 8 Aug 2025
- **Citation:** TCN-2025-NCLAT-00451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sudha-electrical-vs-leena-power-tech-engineers-pvt-ltd-f1e51349

## Summary

### Background

The appeal was filed by an Operational Creditor whose petition to initiate CIRP proceedings under Section 9 of the IBC was dismissed by the Adjudicating Authority on the grounds of a pre-existing dispute and non-maintainability under Section 10A of the IBC.

## Facts

Sudha Electrical, an operational creditor, filed an appeal against an order dismissing its petition to initiate Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The dismissal was based on the existence of a pre-existing dispute regarding a debt and the non-maintainability of CIRP under Section 10A of the IBC. The appellant is engaged in supplying, erecting, testing, and commissioning electrical equipment and cables.

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## Issues and analysis

### Issue 1: Whether there was an undisputed debt and default by the corporate debtor within the meaning of…

**Ratio:** For a CIRP to be initiated, there must be an undisputed debt that has become due and…

**Reasoning:** The Tribunal noted that the respondent's partial payments and confirmation of the invoice…

**Interpretation:** The court interpreted 'default' under Section 3(12) to mean non-payment of a…

**Application:** Given the dispute over the existence of work orders and the conditions for…

## Parties

- **Judges:** N. Sesha…; Arun Ba…
- **Advocates:** Chandra Shekhar…; Astitva Sri…; +8 more

## Timeline

- **September 18, 2019 — Work Ord…**: Respondent claims to have placed the…
- **December 23, 2019 — Work Ord…**: Respondent claims to have placed the…

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