# in the matter of C L Engineering Equipment (India) Pvt. Ltd. CP (IB) No. 81-9-HDB-2021

> NCLT judgment dated 2021-11-03. Citation: TCN-2021-NCLT-00603. The operational creditor, Tata Hitachi Construction Machinery Company Pvt Ltd, filed a petition…

- **Court:** NCLT
- **Order date:** 3 Nov 2021
- **Citation:** TCN-2021-NCLT-00603
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/c-l-engineering-equipment-india-pvt-ltd-cp-ib-no-81-9-hdb-2021-0ac2bd2e

## Summary

### Background

The operational creditor, Tata Hitachi Construction Machinery Company Pvt Ltd, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against the corporate debtor, CL Engineering Equipment (India) Pvt Ltd, for an outstanding debt of Rs. 6,39,66,782.29. This amount includes a principal of Rs. 3,80,96,589.82 and interest of Rs. 2,58,70,193.25 calculated at 9% per annum as of 16.10.2019. The operational creditor claimed that the corporate debtor defaulted on payments for machinery and spares supplied under a dealership agreement dated 29.06.2008. An arbitration award dated 15.06.2016 ordered the corporate debtor to pay Rs. 3,82,96,589.82 with 9% interest from 31.03.2014 until realization.

## Facts

Tata Hitachi Construction Machinery Company Pvt Ltd, the operational creditor, filed a petition against CL Engineering Equipment (India) Pvt Ltd, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The claim was for Rs. 6,39,66,782.29, comprising a principal amount of Rs. 3,80,96,589.82 and interest of Rs. 2,58,70,193.25 as of 16.10.2019. The debt arose from the supply of machinery and spares by the operational creditor to the corporate debtor under a dealership agreement dated 29.06.2008. The corporate debtor acknowledged the debt on 18.04.2014. An arbitration proceeding was initiated due to non-payment, resulting in an award dated 15.06.2016, ordering the corporate debtor to pay Rs. 3,82,96,589.82 with 9% interest from 31.03.2014. The

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor under Section 9 of the Insolvency and …

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

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**Reasoning:** The court considered the documents and averments presented by the operational creditor,

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

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**Application:** The operational creditor fulfilled the requirements under Section 9 by

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Tata Hitachi…
- **Respondents:** CL Engineering…

## Timeline

- **2008-06-29 — Dealership Ag…**: Operational creditor appointed the…
- **2014-04-18 — Debt Acknowl…**: Corporate debtor acknowledged…

## 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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