# In the matter of Emgee Cables and Communication Ltd. IB-601(ND)-2018

> NCLT judgment dated 2018-07-27. Citation: TCN-2018-NCLT-01057. M/s Packwell (India) Pvt Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Jul 2018
- **Citation:** TCN-2018-NCLT-01057
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/emgee-cables-and-communication-ltd-ib-601nd-2018-5d8795c6

## Summary

### Background

M/s Packwell (India) Pvt Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming to be an Operational Creditor against M/s Emgee Cables and Communication Ltd., the Corporate Debtor, for default in payment of outstanding dues. The Operational Creditor supplied materials to the Corporate Debtor based on various invoices. The Corporate Debtor failed to make full payment, leading to the initiation of the insolvency proceedings.

## Facts

M/s Packwell (India) Pvt Ltd. (Operational Creditor) filed a petition against M/s Emgee Cables and Communication Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for outstanding dues. The Operational Creditor claimed that it supplied materials to the Corporate Debtor based on various invoices, but the Corporate Debtor failed to pay the full amount. The total outstanding amount was Rs. 9,77,534/-, out of which only Rs. 39,436/- was paid, leaving a balance of Rs. 9,38,098/-. The Corporate Debtor argued that the quality of goods supplied was substandard, but the court noted that no such complaint was raised before filing the reply. The Corporate Debtor also mentioned that Dena Bank, a secured creditor, had initiated proceedings under

…

## Issues and analysis

### Issue 1: Whether the petitioner qualifies as an Operational Creditor under Section 5 (20) & (21) of the …

**Ratio:** Section 5 (20) defines 'operational creditor' as a person to whom an operational debt is

…

**Reasoning:** The court observed that the Operational Creditor supplied goods (emgee paper rolls, Ply

…

**Interpretation:** The definition of 'operational debt' is broad and includes claims related to

…

**Application:** Since the petitioner supplied goods to the Corporate Debtor, the petitioner is

…

## Parties

- **Judges:** M. M. K…
- **Appellants:** M/s Packwell…
- **Respondents:** M/s Emgee Cables…

## Timeline

- **1987-03-31 — Incorporation of…**: M/s Emgee Cables and…
- **2018-03-15 — Letter sent by…**: M/s Packwell (India) Pvt Ltd. sent a letter to M/s Emgee Cables and Communication Ltd.…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/emgee-cables-and-communication-ltd-ib-601nd-2018-5d8795c6