# In the matter of Aethon Energy LLP C.P. (IB) No. 192-BB-2020

> NCLT judgment dated 2020-11-09. Citation: TCN-2020-NCLT-00281. M/s. Gangamma Industries, an operational creditor, filed C.P.(IB)No.192/BB/2020 under Section 9…

- **Court:** NCLT
- **Order date:** 9 Nov 2020
- **Citation:** TCN-2020-NCLT-00281
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aethon-energy-llp-cp-ib-no-192-bb-2020-b06903f3

## Summary

### Background

M/s. Gangamma Industries, an operational creditor, filed C.P.(IB)No.192/BB/2020 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Aethon Energy LLP, the corporate debtor, due to a default of Rs. 18,11,162/-. The operational creditor claimed to have supplied materials to the corporate debtor, with outstanding payments remaining.

## Facts

M/s. Gangamma Industries, a sole proprietorship owned by Natesh A B, is engaged in the business of fabrication of iron, steel, and aluminum. M/s. Aethon Energy LLP, a limited liability partnership established on November 12, 2014, is involved in solar energy production equipment and LED lights. Gangamma Industries supplied materials to Aethon Energy LLP between April 1, 2017, and July 5, 2019, totaling Rs. 1,44,60,840/-. Aethon Energy LLP paid Rs. 1,26,49,678/-, leaving an outstanding balance of Rs. 18,11,162/-. Gangamma Industries issued a notice on December 26, 2019, demanding payment, but Aethon Energy LLP failed to pay. Aethon Energy LLP admitted to the debt and default, citing a financial crisis in the industry since 2017. The company stated it was unable to

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be initiated against M/s. Aethon …

**Ratio:** Section 9(5)(i) of the IBC, 2016, grants the Adjudicating Authority the power to admit an

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**Reasoning:** The Adjudicating Authority noted that the debt and default were admitted by the

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

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**Application:** In this case, the Adjudicating Authority found that the debt and default were

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## Parties

- **Judges:** Ashok Kumar…; Ashutosh C…
- **Appellants:** M/s. Gangamma…
- **Respondents:** M/s. Aethon…

## Timeline

- **2014-11-12 — Corporate Debtor…**: M/s. Aethon Energy LLP was established…
- **2017-04-01 — Material Suppl…**: M/s. Gangamma Industries started supplying…

## 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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