# In the matter of Lakshmi Precision Screws Limited CP (IB) No. 155-Chd-Hry-2018

> NCLT judgment dated 2018-07-18. Citation: TCN-2018-NCLT-01126. Hind Tradex Limited, an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 18 Jul 2018
- **Citation:** TCN-2018-NCLT-01126
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lakshmi-precision-screws-limited-cp-ib-no-155-chd-hry-2018-c36643f3

## Summary

### Background

Hind Tradex Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate insolvency resolution process against Lakshmi Precision Screws Limited, the corporate debtor. The petition was filed due to the corporate debtor's failure to pay for iron and steel products supplied by the operational creditor between 19.03.2015 and 26.03.2015, totaling ₹4,90,76,653/-, with the due date of the last invoice being 24.06.2015. The operational creditor issued a demand notice under Section 8 of the Code, which was delivered to the corporate debtor on 17.03.2018. The petition was filed on 16.05.2018.

## Facts

M/s Hind Tradex Limited (operational creditor) supplied iron and steel products to M/s Lakshmi Precision Screws Limited (corporate debtor) between 19.03.2015 and 26.03.2015, totaling ₹4,90,76,653/-. The due date for the last invoice was 24.06.2015. The corporate debtor defaulted on payment despite receiving the materials. The operational creditor sent a demand notice under Section 8 of the IBC, 2016, on 15.03.2018, which was delivered on 17.03.2018. The petition under Section 9 of the IBC was filed on 16.05.2018. The corporate debtor did not file any reply or objection to the admission of the petition. The operational creditor claimed interest at 24% p.a. on the outstanding amount. The corporate debtor's authorized share capital is ₹25 crores, and the paid-up share

…

## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9(5) of the IBC, 2016, specifies the conditions under which the Adjudicating

…

**Reasoning:** The Adjudicating Authority found that the application was complete in all respects, there

…

**Interpretation:** Section 9 of the IBC, 2016, provides a mechanism for operational creditors to

…

**Application:** The Adjudicating Authority applied the provisions of Section 9(5) of the IBC,

…

## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Hind Tradex…
- **Respondents:** Lakshmi Precision…
- **Advocates:** G.S. S…; Manish…; +2 more

## Timeline

- **2015-03-19 — Supply of…**: Operational creditor supplied iron and steel products to the corporate debtor between…
- **2015-06-24 — Due Date of Las…**: The due date for the payment of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/lakshmi-precision-screws-limited-cp-ib-no-155-chd-hry-2018-c36643f3