# In the matter of Aprajita Engicon Pvt. Ltd. (IB)-2015(ND) 2019

> NCLT judgment dated 2019-12-09. Citation: TCN-2019-NCLT-00266. The Operational Creditor, SKG Pneumatics INC, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 9 Dec 2019
- **Citation:** TCN-2019-NCLT-00266
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aprajita-engicon-pvt-ltd-ib-2015nd-2019-bb2a2950

## Summary

### Background

The Operational Creditor, SKG Pneumatics INC, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against the Corporate Debtor, Aprajita Engicon PVT LTD, due to non-payment of dues. The Operational Creditor supplied goods to the Corporate Debtor's project site based on a telephonic order, with the assurance of payment within 30 days. An invoice was raised, but the cheque issued by the Corporate Debtor was dishonored due to insufficient funds. Despite subsequent assurances and issuance of new cheques, the Corporate Debtor failed to make the payment.

## Facts

SKG Pneumatics INC, the Operational Creditor, is in the business of supplying valves and fire fighting items. Aprajita Engicon PVT LTD, the Corporate Debtor, telephonically ordered goods for its project at Paras Dew's Dwarka Express Way, promising payment within 30 days. SKG Pneumatics delivered goods on 2018-04-13 and raised an invoice for Rs. 4,45,982. A cheque issued by Aprajita Engicon was dishonored on 2018-09-15 due to insufficient funds. Aprajita Engicon issued two more cheques dated 2018-12-21, but later requested SKG Pneumatics not to encash them, promising online transfer, which never materialized. SKG Pneumatics served a demand notice on 2019-07-06, seeking payment within 10 days, but received no response or payment. SKG Pneumatics then filed a petition

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the Insolvency & …

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

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**Reasoning:** The court observed that the Operational Creditor had provided sufficient evidence to

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** (RETD) RAKESH…; SUMITAPURKA…
- **Appellants:** PRADEEP KUM…
- **Respondents:** APRAJITA ENGICON…

## Timeline

- **2018-04-13 — Goods Del…**: The Operational Creditor delivered goods to…
- **2018-04-13 — Invoice R…**: Invoice bearing number 0064 for an amount of Rs. 4,45,982/- was raised against the goods…

## 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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