# In the matter of Enestee Engineering Limited C.P. No. 2925-I&BP-2018

> NCLT judgment dated 2019-09-17. Citation: TCN-2019-NCLT-01416. JSK Corporation Pvt. Ltd. filed a petition under Section 8 & 9 of the IBC, 2016, seeking to…

- **Court:** NCLT
- **Order date:** 17 Sept 2019
- **Citation:** TCN-2019-NCLT-01416
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/enestee-engineering-limited-cp-no-2925-ibp-2018-03df31bd

## Summary

### Background

JSK Corporation Pvt. Ltd. filed a petition under Section 8 & 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Enestee Engineering Limited. The petition alleges that Enestee Engineering Limited defaulted on 01.11.2017 in making payment of Rs. 54,92,306/- including interest @18% p.a. for structural steel supplied by JSK Corporation Pvt. Ltd.

## Facts

JSK Corporation Pvt. Ltd. (the Petitioner) supplied structural steel to Enestee Engineering Limited (the Corporate Debtor) during September 2017 to October 2017 and raised 8 invoices amounting to Rs. 54,50,502/-. The Corporate Debtor made a part-payment of Rs. 3,93,253/- on 01.11.2017. A demand notice was issued on 21.05.2018 for Rs. 54,92,306/- including interest. The Corporate Debtor did not reply to the demand notice. Two cheques issued by the Corporate Debtor were returned due to insufficient funds. The ledger account shows that an amount of Rs. 54,50,502/- remains payable for a period from 01.04.2017 to 09.05.2018.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in …

**Ratio:** A default occurs when a debt is due and payable, and the debtor has failed to make the

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**Reasoning:** The court considered the invoices, ledger accounts, demand notice, and the fact that two

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**Interpretation:** The Insolvency and Bankruptcy Code defines 'default' as non-payment of debt

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**Application:** In this case, the invoices and ledger accounts established that the debt was

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** JSK Corporation…
- **Respondents:** Enestee Engineerin…
- **Advocates:** Harsh Kes…; Kenny Th…

## Timeline

- **2017-09-01 — Supply of Structural…**: The Petitioner supplied structural steel to the Corporate Debtor during September 2017 to…
- **2017-10-01 — Supply of Structural…**: The Petitioner supplied structural steel to the Corporate Debtor during September 2017 to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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