# In the matter of Advance Power Controls Limited (IB) 3014(ND)2019

> NCLT judgment dated 2020-01-23. Citation: TCN-2020-NCLT-02208. The case originates from a petition filed by Gayatri Steels, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 23 Jan 2020
- **Citation:** TCN-2020-NCLT-02208
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/advance-power-controls-limited-ib-3014nd2019-fa76d558

## Summary

### Background

The case originates from a petition filed by Gayatri Steels, an operational creditor, against Advance Power Controls Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). Gayatri Steels sought to initiate the Corporate Insolvency Resolution Process (CIRP) against Advance Power Controls Limited due to unpaid operational debt. The operational creditor claimed that the corporate debtor defaulted on payments for goods supplied, leading to the petition before the National Company Law Tribunal (NCLT), New Delhi Bench.

## Facts

Gayatri Steels, an operational creditor, filed a petition against Advance Power Controls Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. Gayatri Steels claimed that Advance Power Controls Limited defaulted on payments for goods supplied. The corporate debtor placed various purchase orders with Gayatri Steels between May and July 2015 for the supply of shaper & section, CRCA Coils etc. Gayatri Steels supplied goods against these orders and raised invoices between June and August 2015. The last payment made by the corporate debtor was Rs. 1,00,000 on 12.05.2017. The net outstanding dues against the corporate debtor amounted to Rs. 26,99,669, inclusive of interest. Gayatri Steels issued a demand notice under Section 8 of IBC

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor, Gayatri Steels, under Section 9 of the …

**Ratio:** Section 9 of the IBC, 2016, allows an operational creditor to initiate CIRP against a

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**Reasoning:** The NCLT found that the operational creditor had submitted sufficient evidence, including

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if an operational creditor

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**Application:** In this case, Gayatri Steels provided purchase orders, invoices, and bank

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## Parties

- **Judges:** Ina Mal…; L. N. G…
- **Appellants:** Gayatri S…
- **Respondents:** Advance Power…

## Timeline

- **2015-05-30 — Purchase…**: Corporate Debtor placed purchase…
- **2015-06-12 — Purchase…**: Corporate Debtor placed purchase…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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