# In the matter of J. P. Engineers Pvt. Ltd. (IB)-1048-(ND)-2019

> NCLT judgment dated 2020-02-26. Citation: TCN-2020-NCLT-01803. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 26 Feb 2020
- **Citation:** TCN-2020-NCLT-01803
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-p-engineers-pvt-ltd-ib-1048-nd-2019-a3b7885e

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s Worldwide Metals Pvt. Ltd. (Operational Creditor) against M/s J.P. Engineers Pvt. Ltd. (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claims that the Corporate Debtor defaulted on payments for the supply of Aluminum Ingots and Wire Rods. The Corporate Debtor disputes the claim, alleging that the supplies were based on oral instructions without written purchase orders and that payments were made on behalf of the Operational Creditor to other entities, thereby nullifying the liability.

## Facts

M/s Worldwide Metals Pvt. Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s J.P. Engineers Pvt. Ltd. (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for Aluminum Ingots and Wire Rods supplied between 06.12.2017 and 16.04.2018. The total amount of unpaid invoices was Rs. 16,18,18,265, for which a demand notice was sent on 27.10.2018. The Corporate Debtor argued that the supplies were based on oral instructions, without written purchase orders, and that payments were made to Oyster and Iron Private Limited, Simla Holdings, and Olympus Metal Private Limited on behalf of the Operational

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payments to the Operational Creditor for the …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The court found that the Operational Creditor had provided sufficient evidence of unpaid

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if an operational debt is due

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**Application:** The court applied the ratio to the facts by determining that the Corporate

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## Parties

- **Judges:** DEEPTI M…; SHRI. L. N.…
- **Appellants:** M/s Worldwide…
- **Respondents:** M/S J.P. ENGINEERS…

## Timeline

- **2018-10-27 — Demand N…**: Operational Creditor sent a Demand Notice to the Corporate Debtor under Section 8 of IBC…
- **2018-11-05 — Corporate Debto…**: Corporate Debtor replied to the Demand Notice, claiming supplies were based on oral…

## 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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