# In the matter of EMC Limited C.P. (IB) No. 1237-KB-2018

> NCLT judgment dated 2018-11-12. Citation: TCN-2018-NCLT-00361. The case pertains to an application filed by Beni Gopal Singhi, the sole proprietor of BG…

- **Court:** NCLT
- **Order date:** 12 Nov 2018
- **Citation:** TCN-2018-NCLT-00361
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/emc-limited-cp-ib-no-1237-kb-2018-7683edf5

## Summary

### Background

The case pertains to an application filed by Beni Gopal Singhi, the sole proprietor of BG Associates, who is the operational creditor, against EMC Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed an amount of Rs. 3,51,24,807/- was due from the corporate debtor for the supply of cables. Despite delivering a demand notice, the corporate debtor failed to pay the debt, leading to the application for initiating Corporate Insolvency Resolution Process (CIRP).

## Facts

Beni Gopal Singhi, operating as BG Associates, is an operational creditor engaged in supplying, wholesaling, and trading cables. EMC Limited, the corporate debtor, entered into a contract with the operational creditor for cable supply. The operational creditor supplied cables based on purchase orders. Invoices were raised from February 15, 2018, to March 31, 2018, and acknowledged by the corporate debtor. All goods were received without protest. 24 invoices were raised, with the corporate debtor paying 12 in full, leaving 12 unpaid, totaling Rs. 3,51,24,807/-. The corporate debtor failed to pay despite reminders. The operational creditor submitted purchase orders, unpaid invoices, ledger accounts, a balance confirmation letter dated June 30, 2018, and bank statements

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## Issues and analysis

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

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

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**Reasoning:** The court reasoned that the operational creditor had provided sufficient evidence to

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**Interpretation:** Section 9 is interpreted to mean that if an operational creditor demonstrates

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**Application:** The court applied the ratio to the facts by noting that the operational

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## Parties

- **Judges:** Jinan…
- **Appellants:** Beni Gopal…
- **Respondents:** EMC Lim…

## Timeline

- **2018-01-30 — Purchase Ord…**: One of the purchase order dates…
- **2018-02-12 — Purchase Ord…**: One of the purchase order dates…

## 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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