# In the matter of Makro Cast Private LImited CP (IB) No. 165-9-AMR-2019

> NCLT judgment dated 2019-12-13. Citation: TCN-2019-NCLT-00178. The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Dec 2019
- **Citation:** TCN-2019-NCLT-00178
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/makro-cast-private-limited-cp-ib-no-165-9-amr-2019-06f885b1

## Summary

### Background

The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Jayasiddhi Ganesh Enterprises Pvt Ltd. (the Petitioner), an operational creditor, against M/s Makro Cast Private Limited (the Respondent), the corporate debtor. The Petitioner sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Respondent, alleging default in payment of an operational debt. The Petitioner is engaged in the business of manufacturing, supplying, and selling foundry chemicals, while the Respondent is involved in the manufacture of ferrous and non-ferrous castings. The Respondent had been placing orders with the Petitioner for various materials and chemicals.

## Facts

Jayasiddhi Ganesh Enterprises Pvt Ltd. (Petitioner) is a company registered under the Companies Act, 1956, based in Hyderabad, and is engaged in the business of manufacturing, supplying, and selling foundry chemicals. M/s Makro Cast Private Limited (Respondent) is a company based in Vijayawada, engaged in the manufacture of ferrous and non-ferrous castings. The Respondent had been placing orders for the purchase of various materials and chemicals with the Petitioner. The Petitioner raised invoices for the supplies made. The Respondent made some payments but failed to pay invoices raised between 17.05.2018 and 22.11.2018, amounting to Rs. 7,14,575/-. The Petitioner issued a demand notice on 28.06.2019, which was served on the Respondent on 01.07.2019. The Respondent did

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## Issues and analysis

### Issue 1: Whether the Respondent defaulted in …

**Ratio:** The ratio is that if a corporate debtor defaults in payment of an operational debt

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**Reasoning:** The court reasoned that the Petitioner provided evidence of outstanding invoices and an

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**Interpretation:** The interpretation is based on Section 9 of the Insolvency and Bankruptcy Code,

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** Janab Mohammed…
- **Appellants:** M/s Jayasiddhi…
- **Respondents:** M/s Makro Cast…
- **Advocates:** Ch. Pushyam…

## Timeline

- **2018-05-17 — Invoice R…**: First invoice raised by the…
- **2018-11-22 — Invoice R…**: Last invoice raised by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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