# In the matter of Mahabir Techno Limited CP (IB) No.70-Chd-Hry-2018

> NCLT judgment dated 2018-10-30. Citation: TCN-2018-NCLT-00450. Ashapura Perfoclay Limited, an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 30 Oct 2018
- **Citation:** TCN-2018-NCLT-00450
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mahabir-techno-limited-cp-ib-no70-chd-hry-2018-037ef0f7

## Summary

### Background

Ashapura Perfoclay Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Mahabir Techno Limited, the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP) due to unpaid operational debt. The operational creditor claimed that the corporate debtor failed to make payments for the supply of Bleaching Earth, leading to an outstanding amount of ₹19,58,940/- besides interest. The corporate debtor argued that the supplied material was sub-standard and that there was an oral agreement for adjustment in future business, disputing the amount due.

## Facts

Ashapura Perfoclay Limited (Operational Creditor) filed a petition against Mahabir Techno Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for unpaid operational debt. The Operational Creditor supplied Bleaching Earth to the Corporate Debtor based on purchase orders. The Corporate Debtor allegedly failed to make payments within the stipulated period, leading to an outstanding amount of ₹14,72,856/- as of 06.06.2015. Further supplies were made, totaling ₹21,97,748/- during June-September 2015. Part payments were made, with the last payment of ₹50,000/- on 20.09.2017, leaving ₹19,58,940/- outstanding plus interest. The Operational Creditor issued demand notices on 20.12.2017, sent via speed post on 21.12.2017, but delivery was

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## Issues and analysis

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

**Ratio:** Section 9(5)(i) of the Code stipulates that the Adjudicating Authority shall admit the

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**Reasoning:** The court found that the petition in Form-5 was complete and no defects were pointed out

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**Interpretation:** Section 9(5)(i) sets out the conditions that must be met for the Adjudicating

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**Application:** The court applied Section 9(5)(i) to the facts, finding that the application

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## Parties

- **Judges:** Mr.Justice…; Mr.Pradeep…
- **Appellants:** Ashapura Perfoclay…
- **Respondents:** Mahabir Techno…
- **Advocates:** Pradeep Na…; Yashasvi…; +1 more

## Timeline

- **2015-06-01 — Outstanding…**: Amount of ₹14,72,856/- was due from the…
- **2015-06-01 — Supply of M…**: Operational creditor supplied material worth ₹21,97,748/- during June 2015 to September…

## 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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