# In the matter of MARSHALL MACHINES LIMITED

> NCLT judgment dated 2025-08-29. Citation: TCN-2025-NCLT-01315. Uno Minda Limited (Operational Creditor) filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 29 Aug 2025
- **Citation:** TCN-2025-NCLT-01315
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/marshall-machines-limited-39b264d5

## Summary

### Background

Uno Minda Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Marshall Machines Limited (Corporate Debtor) due to a default amount of Rs. 1,54,39,636 as on 12.10.2023. The default arose from the non-supply of machineries for which advance payments were made.

## Facts

Uno Minda Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Marshall Machines Limited (Corporate Debtor).

The default amount was Rs. 1,54,39,636 as on 12.10.2023, arising from the non-supply of machineries.

The Operational Creditor issued Purchase Orders for the supply of CNC Robotic Automation Cell with Auto Gaging Machines and CNC Pre-Cut Machine.

The Corporate Debtor acknowledged the Purchase Orders and delivery terms of 12-16 weeks.

The Operational Creditor paid advance amounts of ₹1,13,40,000 and ₹17,40,000 towards the supply of machineries.

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is maintainable for the recovery of advance …

**Ratio:** A debt arising out of an advance paid towards the supply of goods and services

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**Reasoning:** The Hon'ble NCLAT, New Delhi in the matter of Sanam Fashion & Design Exchange Limited

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**Interpretation:** Advance payments made for the supply of goods and services fall under the

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**Application:** The claim is in respect of machineries, and the Operational Creditor therefore

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## Parties

- **Judges:** KHETRABASI…; KAUSHALENDRA…
- **Appellants:** Uno Minda L…
- **Respondents:** Marshall Machines…
- **Other parties:** Kanti Mohan…
- **Advocates:** Shailendera…; Anand Chh…; +2 more

## Timeline

- **2023-11-23 — Application…**: The instant application was…
- **2022-09-23 — Purchase O…**: Operational Creditor issued Purchase…

## 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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