# in the matter of GEI Industrial Systems Ltd. CP No. (IB) 35-9-AHM-2017

> NCLT judgment dated 2017-07-20. Citation: TCN-2017-NCLT-00714. The case involves an application filed by Beeta Kone Tools, an operational creditor, seeking to…

- **Court:** NCLT
- **Order date:** 20 Jul 2017
- **Citation:** TCN-2017-NCLT-00714
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gei-industrial-systems-ltd-cp-no-ib-35-9-ahm-2017-7bf3c4e6

## Summary

### Background

The case involves an application filed by Beeta Kone Tools, an operational creditor, seeking to initiate corporate insolvency resolution process (CIRP) against GEI Industrial Systems Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The claim arises from the supply of goods by Beeta Kone Tools to GEI Industrial Systems Ltd. based on purchase orders and invoices from 2011. Despite acknowledging the debt and issuing demand notices, GEI Industrial Systems Ltd. failed to make the payments, leading to the application for CIRP.

## Facts

Beeta Kone Tools (the Applicant) supplied goods to GEI Industrial Systems Ltd. (the Respondent) based on purchase orders dated July 12, 2011, and October 8, 2011. Invoices were issued on December 29, 2011 (BKT-00497 for Rs. 3,443.00 and BKT-00498 for Rs. 221,915.00). The Respondent acknowledged receipt of the goods and accepted liability for the invoices, including interest. A letter from the Respondent dated February 16, 2015, acknowledged the debt. The Applicant claimed Rs. 2,25,358 towards the invoice amounts and Rs. 2,12,713 towards interest at 18% p.a., totaling Rs. 4,38,071. The Applicant issued legal notices on August 22, 2016, September 8, 2016, and December 8, 2016, demanding payment. A demand notice in Form 3 and Form 4 was issued on March 30, 2017, and

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor is complete and meets the requirements of …

**Ratio:** Section 9(5)(i) of the IBC states that the Adjudicating Authority may admit the

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**Reasoning:** The Adjudicating Authority determined that the application was complete as it contained

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**Interpretation:** Section 9 of the IBC outlines the procedure for initiating CIRP by an

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**Application:** In this case, the application was deemed complete because it included copies of

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Beeta Kone…
- **Respondents:** GEI Industrial…

## Timeline

- **2011-07-12 — Purchase Ord…**: Applicant received…
- **2011-10-08 — Purchase Ord…**: Applicant received…

## 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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