# 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-01457. The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 16 Sept 2019
- **Citation:** TCN-2019-NCLT-01457
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mining-and-construction-equipment-private-limited-cp-ib-1664-mb-c-iv-2019-7649f159

## Summary

### Background

The case originates from an application 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 claimed that the Corporate Debtor failed to pay a sum of Rs. 4,00,000/- as principal amount with interest at 15% per annum, as per an invoice dated 15.12.2018. The Corporate Debtor acknowledged the debt but expressed inability to pay due to a cash crunch.

## Facts

Rajesh Vaishnav, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Mining and Construction Equipment Private Limited, the Corporate Debtor, due to non-payment of dues. The Corporate Debtor was incorporated on 20.04.2001. The Operational Creditor claimed a sum of Rs. 4,00,000/- as principal amount, with interest at 15% per annum, based on an invoice dated 15.12.2018, which was the date of default. The invoice stipulated payment within seven days, failing which interest would be charged. The Operational Creditor served a Demand Notice in Form 3 dated 01.04.2019. The Corporate Debtor acknowledged the receipt of the notice on 04.04.2019, admitting their inability to pay due to a cash crunch. In a reply

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## Issues and analysis

### Issue 1: Whether the application made by the Operational Creditor is complete in all respects as required by …

**Ratio:** The application must comply with the requirements of Section 9 of the IBC and related

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**Reasoning:** The court found that the application was complete and showed that the Corporate Debtor

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**Interpretation:** Section 9 of the IBC outlines the requirements for an operational creditor to

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**Application:** The court applied the ratio to the facts, noting that the Operational

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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 incorporated under the Companies Act,…
- **2018-09-15 — Consultancy A…**: Agreement dated 15.09.2018 for consultancy services for restructuring and reviving the…

## 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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