# In the matter of Mining and Construction Equipment Private Limited CP (IB)-1664-MB-C-IV-2019

> NCLT judgment dated 2019-09-16. Citation: TCN-2019-NCLT-01451. The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 16 Sept 2019
- **Citation:** TCN-2019-NCLT-01451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mining-and-construction-equipment-private-limited-cp-ib-1664-mb-c-iv-2019-12b98f76

## Summary

### Background

The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Rajesh Vaishnav, an Operational Creditor, against Mining and Construction Equipment Private Limited, the Corporate Debtor. The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to unpaid dues for consultancy services rendered for restructuring and reviving the corporate debtor's business.

## Facts

Rajesh Vaishnav, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Mining and Construction Equipment Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on April 20, 2001. The Operational Creditor claimed that the Corporate Debtor failed to pay Rs. 4,00,000/- as principal amount with 15% interest per annum as per invoice dated December 15, 2018, which was the date of default. The Operational Creditor had rendered consultancy services for restructuring and reviving the Corporate Debtor's business, as per an agreement dated September 15, 2018. An invoice dated December 8, 2018, stipulated that payment should be made within seven days, failing which interest would be charged at fifteen

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the IBC read with rule 6 …

**Ratio:** The existence of debt and default within the meaning of sub-sections (11) and (12) of

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**Reasoning:** The Adjudicating Authority noted that the Corporate Debtor acknowledged the debt and its

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The Corporate Debtor's reply to the Demand Notice and the petition underscored

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Rajesh Va…
- **Respondents:** Mining and…

## Timeline

- **2001-04-20 — Incorporation of…**: Mining and Construction Equipment Private Limited was incorporated under the Companies…
- **2018-09-15 — Agreement for…**: Agreement between the Operational Creditor and Corporate Debtor for restructuring and…

## 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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