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

> NCLT judgment dated 2018-08-23. Citation: TCN-2018-NCLT-00906. The case involves a company petition filed by M/s. Pohoja Print Solutions Private Limited…

- **Court:** NCLT
- **Order date:** 23 Aug 2018
- **Citation:** TCN-2018-NCLT-00906
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nova-electro-magnetics-ltd-cp-962-ib-cb-2018-c5583a50

## Summary

### Background

The case involves a company petition filed by M/s. Pohoja Print Solutions Private Limited (Operational Creditor) against M/s. Nova Electro Magnetics Limited (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. The Corporate Debtor failed to make the payment for the services rendered, leading to the issuance of demand notices and a statutory notice under Section 433 of the Companies Act, 1956. The Operational Creditor had previously filed a winding-up petition before the Hon'ble High Court of Madras, which was later withdrawn based on the Corporate Debtor's agreement to pay the principal amount due. A cheque

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## Facts

M/s. Pohoja Print Solutions Private Limited (Operational Creditor) filed a petition against M/s. Nova Electro Magnetics Limited (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, pursuant to a quotation dated 14.011.2014. An invoice dated 28.12.2014 was raised for the services rendered. The Corporate Debtor failed to make the payment, leading to the issuance of a demand notice dated 03.03.2015. The Corporate Debtor admitted the liability on 10.04.2015 but stated inability to pay due to financial constraints. A statutory notice under Section 433 of the Companies Act, 1956, was issued on 16.05.2015. The

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making …

**Ratio:** The principle is that if the Corporate Debtor has defaulted in making payment of dues to

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**Reasoning:** The Adjudicating Authority was satisfied that the petitioner had clearly made out the

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**Interpretation:** The legal issue revolves around whether the Corporate Debtor failed to meet its

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**Application:** In this case, the Operational Creditor provided sufficient documentary evidence

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## Parties

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

## Timeline

- **2014-01-14 — Quotation for Printing…**: The petitioner served a quotation to the Corporate Debtor for the desired printing…
- **2014-12-28 — Invoice R…**: The petitioner raised an invoice for…

## 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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