# In the matter of Italtinto Equipment Private
Limited, CP (IB) NO. 625 of 2019

> NCLT judgment dated 2021-02-09. Citation: TCN-2021-NCLT-03082. The petitioner, an operational creditor, filed a company petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 9 Feb 2021
- **Citation:** TCN-2021-NCLT-03082
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/italtinto-equipment-private-limited-cp-ib-no-625-of-2019-9d4ff18c

## Summary

### Background

The petitioner, an operational creditor, filed a company petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against the respondent, alleging default in payment arising from a Business Transfer Agreement.

## Facts

Clariant Services India Private Limited, the operational creditor, filed a company petition against Italtinto Equipment Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The operational creditor alleged that the corporate debtor defaulted on payments stemming from a Business Transfer Agreement dated November 4, 2016, which became effective on October 31, 2016, for the transfer of "Shade Equipment Business." Under the Business Transfer Agreement, the corporate debtor was obligated to pay INR 83,85,941 as consideration (Clause 2) and discharge payments to suppliers for orders placed before October 31, 2016 (Clause 5). The operational

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## Issues and analysis

### Issue 1: Whether the petitioner qualifies as an 'Operational Creditor' and the debt owed is an 'Operational …

**Ratio:** A person who discharges the operational liabilities of another party, which were legally

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**Reasoning:** The Tribunal found that the claims pertained to the supply of goods and services by third

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**Interpretation:** The court interpreted "Operational Creditor" and "Operational

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**Application:** The petitioner, having paid supplier dues and employee retiral liabilities on

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** Clariant Services…
- **Respondents:** Italtinto…
- **Advocates:** For the Petitioner…

## Timeline

- **February 18, 2002 — Petitioner inc…**: Clariant Services India…
- **June 18, 2012 — Respondent inc…**: Italtinto Equipment Private…

## 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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