# In the matter of Capital Electech Pvt. Ltd. CP (IB)-467-(ND)-2017

> NCLT judgment dated 2018-07-06. Citation: TCN-2018-NCLT-01188. Adept Power Private Limited, the Operational Creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 6 Jul 2018
- **Citation:** TCN-2018-NCLT-01188
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/capital-electech-pvt-ltd-cp-ib-467-nd-2017-0b9bb2a8

## Summary

### Background

Adept Power Private Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Capital Electech Private Limited, the Corporate Debtor, alleging a default of Rs. 1,27,95,487 since 19.10.2013. The claim arose from a transaction involving laying/erection, testing, and commissioning of a 33KV feeder for providing 4000 KVA load for Phase-I and Phase-2. The Corporate Debtor was awarded the work order by the Executive Engineer, Electricity Construction Division, KESCo, Kanpur, and the Operational Creditor was engaged as a sub-contractor. The Corporate Debtor resisted the petition, contending that there was no default, a bona fide dispute existed, and the claim was barred by limitation.

## Facts

Adept Power Private Limited (Operational Creditor) filed a petition against Capital Electech Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 1,27,95,487 since 19.10.2013. The claim originated from a contract for laying/erection, testing, and commissioning of a 33KV feeder. Capital Electech was the main contractor, having been awarded the work by KESCo, Kanpur, and Adept Power was a sub-contractor. Adept Power completed work between January 2013 and March 2015, raising invoices totaling Rs. 300,15,634, but Rs. 1,27,95,487 remained outstanding. Adept Power sent demand notices on 08.02.2017 and 04.09.2017. Capital Electech contested the petition, arguing no default occurred because payment was

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the IBC, 2016 is …

**Ratio:** The Tribunal has summary jurisdiction and cannot delve into intricate details requiring

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**Reasoning:** The Tribunal stated that it cannot go into the aspect of who is in default in relation to

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**Interpretation:** The Tribunal's interpretation emphasizes the limitations of its summary

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**Application:** The Tribunal applied this principle by refusing to adjudicate the dispute, as

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## Parties

- **Judges:** R. VARADH…; DR.V.K.Su…
- **Appellants:** M/s ADEPT POWER…
- **Respondents:** M/S CAPITAL…

## Timeline

- **2013-10-19 — Alleged Defau…**: Date from which the Operational Creditor…
- **2013-01-01 — Work Completi…**: Start of the period during which the…

## 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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