# In the matter of Nova Electro Magnetics Ltd. CP-962-(IB)-CB-2018

> NCLT judgment dated 2018-08-23. Citation: TCN-2018-NCLT-00908. The case involves an application filed by M/s. Pohoja Print Solutions Private Limited, the…

- **Court:** NCLT
- **Order date:** 23 Aug 2018
- **Citation:** TCN-2018-NCLT-00908
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nova-electro-magnetics-ltd-cp-962-ib-cb-2018-6959b779

## Summary

### Background

The case involves an application filed by M/s. Pohoja Print Solutions Private Limited, the Operational Creditor, against M/s. Nova Electro Magnetics Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor provided printing services to the Corporate Debtor for its annual reports for the financial year 2013-2014. After providing the services, the Operational Creditor raised an invoice, but the Corporate Debtor failed to make the payment. The Operational Creditor then issued a demand notice and subsequently a statutory notice under the Companies Act, 1956. The Corporate Debtor also issued a cheque which was dishonored. The Operational Creditor then filed a winding-up petition before the High Court of Madras,

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## Facts

M/s. Pohoja Print Solutions Private Limited (Operational Creditor) provided printing services to M/s. Nova Electro Magnetics Limited (Corporate Debtor) for its annual reports for the financial year 2013-2014. The Operational Creditor issued an invoice dated 28.12.2014 for the services rendered. The Corporate Debtor failed to make the payment. The Operational Creditor issued a demand notice dated 03.03.2015. The Corporate Debtor replied on 10.04.2015, admitting the liability but stating inability to pay due to financial constraints. The Operational Creditor issued a statutory notice under section 433 of the Companies Act, 1956 on 16.05.2015. The Corporate Debtor failed to make any payment. The Operational Creditor filed a winding-up petition before the High Court of

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating …

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

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**Reasoning:** The Adjudicating Authority considered the submissions of both the Operational Creditor

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

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**Application:** In this case, the Operational Creditor demonstrated that a debt was owed by the

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** M/S. POHOJA PRINT…
- **Respondents:** M/s.Nova Electro…

## Timeline

- **2013-01-01 — Printing Services…**: Operational Creditor provided printing services for Corporate Debtor's annual reports for…
- **2014-12-28 — Invoice I…**: Operational Creditor issued an invoice…

## 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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