# In the matter of Anand Teknow Aids Engineering India Limited CP No. 1796-IBC-NCLT-MB-MAH-2018

> NCLT judgment dated 2018-10-04. Citation: TCN-2018-NCLT-00675. The case involves an application filed by Hallmark Metals Private Limited, an Operational…

- **Court:** NCLT
- **Order date:** 4 Oct 2018
- **Citation:** TCN-2018-NCLT-00675
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/anand-teknow-aids-engineering-india-limited-cp-no-1796-ibc-nclt-mb-mah-2018-9ba509f4

## Summary

### Background

The case involves an application filed by Hallmark Metals Private Limited, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Anand Teknow Aids Engineering India Limited, the Corporate Debtor, due to unpaid operational debt. The Operational Creditor claimed that it supplied steel items to the Corporate Debtor, raised invoices for the same, and that payments for goods sold after 08.06.2016 were outstanding. A demand notice was issued, and consent terms were agreed upon, but the Corporate Debtor failed to adhere to the payment schedule outlined in the consent terms.

## Facts

Hallmark Metals Private Limited (Operational Creditor) supplied steel items to Anand Teknow Aids Engineering India Limited (Corporate Debtor). The Corporate Debtor made payments for supplies until 08.06.2016, but subsequent invoices remained unpaid. As of 30.06.2017, the outstanding amount was ₹9,96,031, including interest. The Operational Creditor issued a legal demand notice on 08.07.2017, to which the Corporate Debtor replied on 22.07.2017, not disputing the principal amount but disputing the interest. A 'Demand Notice' under Section 8 of the Insolvency and Bankruptcy Code was served on 01.12.2017. The Corporate Debtor did not pay the demanded amount or raise a dispute within 10 days. Both parties entered into Consent Terms on 26.06.2018, outlining a payment

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## Issues and analysis

### Issue 1: Whether the debt in question qualifies as an 'Operational Debt' under Section 5(21) of the …

**Ratio:** Section 5(21) of the Insolvency and Bankruptcy Code defines 'Operational Debt' as a debt

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**Reasoning:** The court considered the evidence on record, which established that the Operational

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**Interpretation:** The interpretation of 'Operational Debt' under Section 5(21) is broad and

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**Application:** In this case, the debt arose from the supply of steel items by the Operational

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Hallmark Metals…
- **Respondents:** Anand Teknow Aids…; Ritesh Ma…

## Timeline

- **2016-06-08 — Cut-off Date for…**: Payments for supplies made prior to this date were received; payments for supplies after…
- **2017-06-30 — Outstanding…**: Total outstanding amount,…

## 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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