# In the matter of Arempee Compressors Private Limited IBA-1274-2019

> NCLT judgment dated 2020-12-23. Citation: TCN-2020-NCLT-00020. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 23 Dec 2020
- **Citation:** TCN-2020-NCLT-00020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arempee-compressors-private-limited-iba-1274-2019-004f7845

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Viraj Conductors Private Limited (Operational Creditor) against Arempee Compressors Private Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default of Rs. 18,83,070/- including interest. The Corporate Debtor admitted to the liability but cited financial difficulties due to the Covid-19 pandemic as a reason for non-payment.

## Facts

Viraj Conductors Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Arempee Compressors Private Limited (Corporate Debtor) for a default amount of Rs. 18,83,070/-. The Operational Creditor supplied copper to the Corporate Debtor, raising 7 invoices from 07.12.2018 to 23.02.2019, totaling Rs. 33,28,591/-, out of which Rs. 15,25,081/- was paid, leaving Rs. 18,03,510/- unpaid. The Corporate Debtor issued 10 cheques which were returned with the endorsement "Payment stopped by the drawer". The Corporate Debtor admitted its liability in a letter dated 19.03.2019 but failed to make the payment. The Operational Creditor issued a demand notice under Section 8 of IBC, 2016, on 07.08.2019,

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is maintainable under Section 9 of the …

**Ratio:** Section 9(5) of the IBC, 2016, states that the Adjudicating Authority shall admit the

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**Reasoning:** The Tribunal considered the facts and circumstances of the case and the position of law

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

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**Application:** The Tribunal found that the application was complete and met the requirements

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Viraj Conductors…
- **Respondents:** Arempee Compressor…
- **Advocates:** Anusha…; Arul…

## Timeline

- **2018-12-07 — Invoice R…**: First invoice raised by…
- **2019-02-23 — Invoice R…**: Last invoice raised by…

## 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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