# In the matter of Neelkantham Systems Private Limited CP (IB) No. 105-CTB-2019

> NCLT judgment dated 2019-11-19. Citation: TCN-2019-NCLT-00542. M/s. Sarada Equipment, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 19 Nov 2019
- **Citation:** TCN-2019-NCLT-00542
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/neelkantham-systems-private-limited-cp-ib-no-105-ctb-2019-0397c77d

## Summary

### Background

M/s. Sarada Equipment, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against M/s. Neelkantham Systems Private Limited, the corporate debtor. The application was based on unpaid dues for excavation machines supplied on rental basis. The transactions occurred between 01.12.2016 and 03.05.2017. The application was filed on 20.08.2019.

## Facts

M/s. Sarada Equipment (Operational Creditor) supplied excavation machines on rental basis to M/s. Neelkantham Systems Private Limited (Corporate Debtor). The transactions occurred between 01.12.2016 and 03.05.2017. The Corporate Debtor failed to pay a sum of Rs. 5,69,678/- to the Operational Creditor. The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 on 20.08.2019. Notice was served to the Corporate Debtor, but there was no representation on their behalf. The Operational Creditor submitted invoices and bank statements showing no payments received. The registered office of the Corporate Debtor is in Chhattisgarh. The applicant proposed CA Sandeep Maheshwari as the IRP. A notice under Section 8 of IBC dated

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court found that the Operational Creditor had supplied excavation machines to the

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts and found that the Operational

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## Parties

- **Judges:** Sucharit…; Satya Ranjan…
- **Appellants:** M/s. Sarada…
- **Respondents:** M/s. Neelkantham…
- **Advocates:** Umesh Chandra…; Aparna…

## Timeline

- **2016-12-01 — Transaction St…**: Transactions between the Operational…
- **2017-05-03 — Transaction E…**: Transactions between the Operational…

## 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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