# In the matter of APE Power Pvt. Ltd. CP (IB) No. 35-KB-2018

> NCLT judgment dated 2018-10-04. Citation: TCN-2018-NCLT-00670. Electro Poles Products Private Limited filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 4 Oct 2018
- **Citation:** TCN-2018-NCLT-00670
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ape-power-pvt-ltd-cp-ib-no-35-kb-2018-753097cf

## Summary

### Background

Electro Poles Products Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against APE Power Private Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor failed to pay legitimate dues for materials supplied based on purchase orders. The Corporate Debtor disputed the claim, alleging that the application was not authorized and that the claim was barred by limitation. The Corporate Debtor also disputed the interest rate of 24% per annum.

## Facts

Electro Poles Products Private Limited (Operational Creditor) supplied materials to APE Power Private Limited (Corporate Debtor) based on purchase orders. The Corporate Debtor failed to pay the dues. The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP. The Corporate Debtor made a partial payment of Rs. 6 lakhs on 23.10.2017, leaving a balance of Rs. 1,05,987/- plus interest. The Operational Creditor claimed interest at 24% per annum. The Corporate Debtor disputed the claim, alleging lack of authorization for the application, disputing the interest rate, and claiming the application was barred by limitation. The Corporate Debtor argued that the invoice claiming interest was a 'fake invoice'. The

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## Issues and analysis

### Issue 1: Whether the application for …

**Ratio:** A resolution authorizing a person to conduct legal proceedings before Quasi-Judicial

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**Reasoning:** The court found that the resolution authorizing Mr. Ajay Kumar Gupta to conduct legal

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**Interpretation:** The court interpreted the resolution broadly, considering its letter and

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**Application:** The court applied the ratio to the facts, finding that Mr. Ajay Kumar Gupta had

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## Parties

- **Judges:** Jinan…
- **Appellants:** Electro Poles…
- **Respondents:** APE POWER PRIVATE…
- **Advocates:** Mahesh…; Asif…

## Timeline

- **2014-05-03 — Purchase…**: Payment Terms - 2 Lakhs advance and…
- **2014-05-15 — Advance p…**: 2 Lakhs advan…

## 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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