# In the matter of K. H. Foges India Privae Limited C.P. No. 4528-IBC-MB-2018

> NCLT judgment dated 2021-07-16. Citation: TCN-2021-NCLT-01701. M/s P. Manickam & Co. (Operational Creditor) filed a company petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 16 Jul 2021
- **Citation:** TCN-2021-NCLT-01701
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/k-h-foges-india-privae-limited-cp-no-4528-ibc-mb-2018-2608e346

## Summary

### Background

M/s P. Manickam & Co. (Operational Creditor) filed a company petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s K.H. Foges India Private Limited (Corporate Debtor). The Operational Creditor alleged that the Corporate Debtor defaulted in making payment for pile foundation work. The total value of work was Rs. 93,19,550/-. The Corporate Debtor defaulted in remitting a principal amount of Rs. 31,70,710 along with interest of Rs. 22,25,027, totaling Rs. 53,95,744/-. The Operational Creditor also lodged proceedings before the Micro Small Enterprises Facilitation Council, which ruled in favor of the Operational Creditor. Despite this, the Corporate Debtor failed to comply

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## Facts

M/s P. Manickam & Co. (Operational Creditor) is a partnership firm engaged in construction. M/s K.H. Foges India Private Limited (Corporate Debtor) is a private limited company in the building and construction industry. On May 5, 2015, the Corporate Debtor placed a purchase order with the Operational Creditor for pile foundation work, valued at Rs. 93,19,550/-. The Operational Creditor executed the work and raised invoices. The Corporate Debtor defaulted on payments, leaving a principal amount of Rs. 31,70,710 and interest of Rs. 22,25,027 unpaid, totaling Rs. 53,95,744/-. The Operational Creditor obtained a favorable order from the Micro Small Enterprises Facilitation Council. The Corporate Debtor obtained an arbitral award against the Operational Creditor for Rs.

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## Issues and analysis

### Issue 1: Whether the company petition in pursuance of the order dated 13.06.2018 passed by the Micro Small …

**Ratio:** A recovery order passed by the Micro Small Enterprises Facilitation Council is not a

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**Reasoning:** The NCLT reasoned that the order from the Micro Small Enterprises Facilitation Council

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**Interpretation:** The interpretation of Section 5(20) of the IBC is crucial in determining

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**Application:** The NCLT applied this reasoning to the facts, concluding that the Operational

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** M/s P Manickam &…
- **Respondents:** M/s K.H. Foges…
- **Advocates:** Vikrant S…; Suraj Kuma…

## Timeline

- **2015-05-05 — Purchase…**: Corporate Debtor placed a purchase order with the Operational Creditor for pile…
- **2018-06-13 — MSEFC Or…**: Micro Small Enterprises Facilitation Council…

## 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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