# In the matter of A B Infrabuild Limited C.P. No. 2916-IBC-MB-2019

> NCLT judgment dated 2021-08-26. Citation: TCN-2021-NCLT-01277. The case involves a petition filed by Namaskar Service Station, the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 26 Aug 2021
- **Citation:** TCN-2021-NCLT-01277
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/a-b-infrabuild-limited-cp-no-2916-ibc-mb-2019-16e1b9d7

## Summary

### Background

The case involves a petition filed by Namaskar Service Station, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against A. B. Infrabuild Limited, the Corporate Debtor, for defaulting on payments. The Operational Creditor claims a total debt of INR 30,40,786, including principal and interest. The Corporate Debtor disputes the claim, alleging mala fide intentions and discrepancies in invoices.

## Facts

Namaskar Service Station (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against A. B. Infrabuild Limited (Corporate Debtor). The Operational Creditor claimed a total debt of Rs. 30,40,786, which included a principal amount of Rs. 21,07,997 and interest of Rs. 9,32,789 at 18% per annum. The debt allegedly arose from the supply of petrol/diesel between 18.02.2017 and 31.07.2019. The Operational Creditor issued a demand notice on 26.06.2019. The Corporate Debtor, in its reply and earlier correspondence dated 28.12.2018, admitted to owing Rs. 4,77,967. The Corporate Debtor contested the petition, alleging that the Operational Creditor was not a legal entity, had

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by the Operational Creditor is maintainable under Section 9 of …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The NCLT considered the submissions of both parties and found that the Operational

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**Interpretation:** The court interpreted Section 9 to mean that if an operational debt exists and

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**Application:** The NCLT applied this interpretation to the facts of the case, noting that the

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Respondents:** A B Infrabuild…; Sanjeev M…

## Timeline

- **2017-02-18 — Outstanding…**: Corporate Debtor became liable to pay the Operational Creditor an outstanding amount of…
- **2019-06-26 — Demand N…**: Demand notice sent by the Operational Creditor to the Corporate Debtor demanding the…

## 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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