# In the matter of KH Foges India Private Limited CP (IB) No. 472 OF 2020

> NCLT judgment dated 2021-12-13. Citation: TCN-2021-NCLT-00197. The case involves an application filed on 2020-02-03 by Arvind Pipes And Fittings Industries…

- **Court:** NCLT
- **Order date:** 13 Dec 2021
- **Citation:** TCN-2021-NCLT-00197
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kh-foges-india-private-limited-cp-ib-no-472-of-2020-75760996

## Summary

### Background

The case involves an application filed on 2020-02-03 by Arvind Pipes And Fittings Industries Private Limited (Operational Creditor) against KH Foges India Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) due to an operational debt of Rs. 4,05,89,889.00. The Operational Creditor is in the business of manufacturing and supplying MS TMT Bars, while the Corporate Debtor is involved in piling work, infrastructure, and project development. The Corporate Debtor had approached the Operational Creditor for the supply of MS TMT Bars. The Corporate Debtor failed to pay the tax invoices raised by the applicant company since 2018-10-20.

## Facts

Arvind Pipes And Fittings Industries Private Limited (Operational Creditor) filed a company petition on 2020-02-03 against KH Foges India Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The claim was based on an operational debt of Rs. 4,05,89,889.00. The Operational Creditor is engaged in the business of manufacturing and supplying MS TMT Bars, with a factory in Gujarat. The Corporate Debtor is involved in piling work, infrastructure, and project development across India. The Corporate Debtor had approached the Operational Creditor for the supply of MS TMT Bars. The Operational Creditor agreed and supplied the MS TMT Bars based on purchase orders.

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor meets the requirements for admission …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for an

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**Reasoning:** The court noted that the Corporate Debtor failed to file a reply to the petition, and

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**Interpretation:** Section 9 is interpreted to mean that if the operational creditor demonstrates

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**Application:** In this case, the Operational Creditor demonstrated the existence of an

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Arvind Pipes And…
- **Respondents:** KH Foges India…

## Timeline

- **2020-02-03 — Company Petiti…**: The company petition was filed by Arvind Pipes And Fittings Industries Private Limited…
- **2018-10-20 — Default on Tax…**: The Corporate Debtor failed to pay the tax invoices raised by the applicant company since…

## 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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