# M/S Sunder Engineering Works vs. Associated Machinary Corporation Ltd

> NCLT judgment dated 2026-07-22. Citation: TCN-2026-NCLT-00632. M/s Sunder Engineering Works, a sole proprietorship through Mr. Siddhant Jain (Operational…

- **Court:** NCLT
- **Order date:** 22 Jul 2026
- **Citation:** TCN-2026-NCLT-00632
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-allahabad/ms-sunder-engineering-works-vs-associated-machinary-corporation-ltd-9t63y

## Summary

### Background

M/s Sunder Engineering Works, a sole proprietorship through Mr. Siddhant Jain (Operational Creditor), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Associated Machinary Corporation Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed an outstanding operational debt of Rs. 6,03,95,205.13/-, arising from the supply of goods. The Corporate Debtor disputed the debt, alleging non-supply of goods, fabricated invoices, and pre-existing disputes, citing criminal complaints and GST investigations against the Operational Creditor and its related entities (Meerut Steel, JSJ Enterprises).

## Facts

M/s Sunder Engineering Works (Operational Creditor/Applicant), through its proprietor Mr. Siddhant Jain, filed an application under Section 9 of the IBC, 2016.

The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Associated Machinery Corporation Limited (Corporate Debtor).

The Operational Creditor is a sole proprietorship firm registered under the Goods and Services Tax (GST) Act.

The Corporate Debtor's registered office is in Ghaziabad, Uttar Pradesh.

The Operational Creditor did not propose an Insolvency Professional in Part-III of the Petition.

The total outstanding debt claimed is Rs. 6,03,95,205.13/-, comprising a principal amount of Rs. 4,12,69,079.88/- and interest of Rs. 1,91,26,125.25/- up to 30.06.2022.

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## Issues and analysis

### Issue 1: Whether there is a Debt …

**Ratio:** The existence of operational debt and default is established by contemporaneous

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**Reasoning:** The Operational Creditor provided extensive documentary evidence: tax invoices for goods

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**Interpretation:** Under Section 9 of the IBC, 'debt' and 'default' are proven when the

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**Application:** The Tribunal found that the Operational Creditor successfully established the

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## Parties

- **Judges:** Sh. Praveen Gupta…; Sh. Ashish Verma…
- **Appellants:** M/S SUNDER…; M/S SUNDER…
- **Respondents:** ASSOCIATED…
- **Other parties:** Committee of…; Pawan T…; +2 more
- **Advocates:** Prachi…; Sachin…; +4 more

## Timeline

- **2019-11-27 — First Su…**: First supply made by Operational Creditor…
- **2020-09-30 — Last Sup…**: Last supply made by Operational Creditor…

## 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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