# In the matter of Hajee A.P. Bava & Company Construction Pvt. Ltd. C.P(IB) No.227-BB-2018

> NCLT judgment dated 2019-03-11. Citation: TCN-2019-NCLT-04504. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 11 Mar 2019
- **Citation:** TCN-2019-NCLT-04504
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hajee-ap-bava-company-construction-pvt-ltd-cpib-no227-bb-2018-56640a8c

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s. OM Industrial Corporation (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Hajee A.P.Bava & Company Constructions Pvt. Ltd (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor failed to pay an outstanding amount of Rs. 66,87,540/- as of 20.09.2018 for electrical and hardware goods supplied between 21.06.2016 and 29.06.2017. The Corporate Debtor acknowledged a debt of Rs. 49,08,042/- but disputed the interest amount. The Operational Creditor insisted that the amount was due and default existed, and the application was not barred by the Limitation Act.

## Facts

M/s. OM Industrial Corporation (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Hajee A.P.Bava & Company Constructions Pvt. Ltd (Corporate Debtor), claiming an outstanding amount of Rs. 66,87,540/- as of 20.09.2018. The debt arose from the supply of electrical and hardware goods by the Operational Creditor to the Corporate Debtor between 21.06.2016 and 29.06.2017. The last payment was received on 25.01.2018. The Corporate Debtor acknowledged a balance of Rs. 49,08,042/- as of 31.03.2018 but disputed the interest amount of Rs. 17,79,498/-. A demand notice was served on 22.09.2018. The Corporate Debtor replied on 08.10.2018, not denying the claim but requesting time to organize funds. The Operational

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## Issues and analysis

### Issue 1: Whether there is an 'operational …

**Ratio:** The Hon'ble Supreme Court has established that the I&B Code is not intended to be a

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**Reasoning:** The court considered the Corporate Debtor's statement of objections, which acknowledged a

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**Interpretation:** The interpretation of 'operational debt' under the I&B Code requires a

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**Application:** In this case, the Corporate Debtor's acknowledgment of Rs. 49,08,042/- as the

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s. OM Industrial…
- **Respondents:** M/s. Hajee…
- **Advocates:** G.K.J…; N. Gowtham…; +1 more

## Timeline

- **2016-06-21 — Supply of Good…**: The Petitioner supplied electrical and…
- **2017-06-29 — Supply of Goo…**: The Petitioner supplied electrical and…

## 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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