# In the matter of Geetha Sai Energy Solution Private Limited CP-656-(IB)-CB-2017

> NCLT judgment dated 2018-01-12. Citation: TCN-2018-NCLT-01939. The case pertains to an application filed by the Operational Creditor under Section 9 of the…

- **Court:** NCLT
- **Order date:** 12 Jan 2018
- **Citation:** TCN-2018-NCLT-01939
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/geetha-sai-energy-solution-private-limited-cp-656-ib-cb-2017-4d3206a8

## Summary

### Background

The case pertains to an application filed by the Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Operational Creditor and Corporate Debtor entered into a 'Power Trade Agreement' on 2014-09-15 for power supply. The Corporate Debtor defaulted on payments, leading to the application for CIRP.

## Facts

The Operational Creditor, Kamachi Industries Limited, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against the Corporate Debtor, Geetha Sai Energy Solution Private Limited, for an outstanding debt of Rs. 1,77,17,644/-. The Operational Creditor and the Corporate Debtor had entered into a 'Power Trade Agreement' on 2014-09-15 for the supply of power. The Corporate Debtor issued three post-dated cheques, each for Rs. 50,00,000/-, which were dishonored due to 'insufficient funds'. The Operational Creditor filed a complaint before the Metropolitan Magistrate at Egmore, Chennai, and also sent a demand notice under Section 8(1) of the I&B Code, 2016, which was not accepted by the Corporate Debtor. The Operational Creditor served notice

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has met the requirements for the admission of the application …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, specifies the conditions for an

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**Reasoning:** The court observed that the Operational Creditor had submitted sufficient evidence,

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**Interpretation:** Section 9 of the I&B Code is interpreted to mean that if an operational

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**Application:** In this case, the Operational Creditor provided evidence of the 'Power Trade

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Kamachi Industries…
- **Respondents:** Geetha Sai Energy…; GEETHA SAI ENERGY…
- **Advocates:** Preethi. C.…

## Timeline

- **2014-09-15 — Power Trade A…**: Operational Creditor and Corporate Debtor entered into a 'Power Trade Agreement' for…
- **2016-03-16 — Cheque D…**: Corporate Debtor issued three post-dated cheques dated 2016-03-16, 2016-03-23 and…

## 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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