# In the matter of KHN Industrial Equipments India Private Limited Company Petition (IB)No.351-ALD-2018

> NCLT judgment dated 2019-05-21. Citation: TCN-2019-NCLT-03241. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 May 2019
- **Citation:** TCN-2019-NCLT-03241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/khn-industrial-equipments-india-private-limited-company-petition-ibno351-ald-201-1d683420

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Faster Hydraulics Private Limited, the operational creditor, against KHN Industrial Equipments India Private Limited, the corporate debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP) due to unpaid operational debt. The operational creditor claimed that the corporate debtor defaulted on payments for couplings supplied in 2014, 2015, and 2016, amounting to Rs. 70,72,250.89.

## Facts

Faster Hydraulics Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against KHN Industrial Equipments India Private Limited (Corporate Debtor) for unpaid dues. The operational creditor supplied couplings to the corporate debtor in the years 2014, 2015, and 2016. The total amount due was Rs. 70,72,250.89. The operational creditor issued a demand notice to the corporate debtor, but the corporate debtor did not reply. The corporate debtor also did not contest the matter before the NCLT. The operational creditor submitted documents including invoices, demand notice, and bank statements. The application was filed on 20.09.2018, with invoices ranging from 08.04.2016 to 16.07.2016.

## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor complies with the requirements of Section …

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

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**Reasoning:** The court perused the documents annexed with the petition and found that the petitioner

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**Interpretation:** Section 9 requires the operational creditor to demonstrate that a debt is due

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**Application:** The court found that the operational creditor had submitted sufficient evidence

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## Parties

- **Judges:** Harihar Prakash…; Saroj Ra…
- **Appellants:** Faster Hydraulics…
- **Respondents:** KHN Industrial…

## Timeline

- **2014-01-24 — Incorporation of…**: KHN Industrial Equipments India…
- **2018-05-21 — Demand N…**: Petitioner annexed a copy of the Demand Notice dated 21.05.2018 along with Invoices which…

## 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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