# In the matter of Budhale Engineer Pvt. Ltd. C.P. (IB) 1859-2019

> NCLT judgment dated 2019-12-11. Citation: TCN-2019-NCLT-00224. The case involves a Company Petition filed by Mr. Gangaprasad R. Tripathi, the Proprietor of…

- **Court:** NCLT
- **Order date:** 11 Dec 2019
- **Citation:** TCN-2019-NCLT-00224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/budhale-engineer-pvt-ltd-cp-ib-1859-2019-1b2290c8

## Summary

### Background

The case involves a Company Petition filed by Mr. Gangaprasad R. Tripathi, the Proprietor of Gold Ispat & Steel (Operational Creditor), seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Budhale Engineer Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Operational Creditor claimed that the Corporate Debtor defaulted in making payments for the Gold Rolled Coil supplied.

## Facts

Mr. Gangaprasad R. Tripathi, proprietor of Gold Ispat & Steel, filed a company petition against Budhale Engineer Pvt. Ltd. seeking to initiate CIRP. The Operational Creditor supplied Gold Rolled Coil to the Corporate Debtor, raising eleven invoices totaling Rs. 79,10,024/-. The Corporate Debtor paid Rs. 9,29,390/-, leaving an outstanding amount of Rs. 1,06,83,342/-, including principal, debit notes, and interest calculated at 24% until 30/04/2019. The date of default was 29/09/2018. A demand notice dated 02/04/2019 was served on the Corporate Debtor, but no reply was received. The Corporate Debtor did not appear despite several opportunities given by the court. The Operational Creditor does not hold any security against the supply of services. The Corporate

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of a debt and default on the part of …

**Ratio:** Section 9 of the IBC requires the Operational Creditor to prove the existence of a debt

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**Reasoning:** The court examined the invoices, ledger accounts, and demand notice submitted by the

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if the Operational Creditor

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**Application:** In this case, the Operational Creditor provided invoices and ledger accounts

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** Gangaprasad R.…
- **Respondents:** Budhale Engineer…

## Timeline

- **2018-09-29 — Date of D…**: The date on which the Corporate Debtor defaulted in making payments to the Operational…
- **2019-04-02 — Demand N…**: The Operational Creditor sent a demand notice to the Corporate Debtor for the outstanding…

## 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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