# In the  matter of Maa Tara Ferrotech Private Limited CP(IB) NO. 836-KB-2018

> NCLT judgment dated 2020-03-13. Citation: TCN-2020-NCLT-01531. M/s. Vaishno Engineer System Associates, the Operational Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 13 Mar 2020
- **Citation:** TCN-2020-NCLT-01531
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maa-tara-ferrotech-private-limited-cpib-no-836-kb-2018-d2d141cb

## Summary

### Background

M/s. Vaishno Engineer System Associates, the Operational Creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against M/s. Maa Tara Ferrotech Private Limited, the Corporate Debtor, for defaulting on an operational debt of Rs. 10,58,000/-. The Corporate Debtor had issued a work order on 6-6-2013, and the Operational Creditor completed the fabrication job. Despite repeated demands, the Corporate Debtor did not pay the debt, although they admitted the debt in 2014 and 2017. A notice under Section 8 of the IBC, 2016, dated 21-05-2018, was served on the Corporate Debtor.

## Facts

M/s. Vaishno Engineer System Associates (Operational Creditor) provided fabrication services to M/s. Maa Tara Ferrotech Private Limited (Corporate Debtor) based on a work order dated 2013-06-06. The Corporate Debtor defaulted on a payment of Rs. 10,58,000/- despite repeated demands. The Corporate Debtor admitted the debt in 2014 and 2017. A notice under Section 8 of the Insolvency & Bankruptcy Code, 2016 was served on 2018-05-21. The Operational Creditor filed an application under Section 9 of the IBC, 2016. The Operational Creditor produced invoices, demand notices, and debt confirmation as evidence. The Corporate Debtor did not file an affidavit in reply despite being granted time.

## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

**Ratio:** Section 9 of the Insolvency & Bankruptcy Code, 2016 allows an operational creditor to

…

**Reasoning:** The court found that the Operational Creditor had provided sufficient evidence, including

…

**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

…

**Application:** The Operational Creditor demonstrated a default of Rs. 10,58,000/- and complied

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** M/s. Vaishno…
- **Respondents:** M/s. Maa Tara…
- **Advocates:** Susanta…; Kaushik M…; +2 more

## Timeline

- **2013-06-06 — Work Order…**: Corporate Debtor issued a work…
- **2014-01-01 — Debt Acknowl…**: Corporate Debtor…

## 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/maa-tara-ferrotech-private-limited-cpib-no-836-kb-2018-d2d141cb