# In the matter of Omax Autos Limited

> NCLT judgment dated 9 Feb 2024. Citation: TCN-2024-NCLT-02682. M/s. Sunflag Iron & Steel Company Limited (Applicant) filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 9 Feb 2024
- **Citation:** TCN-2024-NCLT-02682
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/omax-autos-limited-c4d49348

## Summary

### Background

M/s. Sunflag Iron & Steel Company Limited (Applicant) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Omax Autos Limited (Respondent). The Applicant claimed an outstanding operational debt of Rs. 1,20,23,007/-, including interest, with the date of default being June 10, 2021. The Respondent, Omax Autos Limited, is a company incorporated on April 28, 1983, with its registered office in Gurugram, Haryana, falling within the territorial jurisdiction of the Tribunal. The Applicant asserted that the Respondent issued a Purchase Order for the

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## Facts

M/s. Sunflag Iron & Steel Company Limited, the Applicant, initiated a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016) against M/s. Omax Autos Limited, the Respondent. The Applicant sought to commence the Corporate Insolvency Resolution Process (CIRP) against the Respondent, alleging an outstanding operational debt. The petition was filed in accordance with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

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## Issues and analysis

### Issue 1: Whether the application filed by Sunflag Iron & Steel Company Limited under Section 9 of the IBC is…

**Ratio:** An application for initiating the Corporate Insolvency Resolution Process under Section 9…

**Reasoning:** The court reasoned that the Applicant's own submissions, including the statement of…

**Interpretation:** The court interpreted Section 10A of the IBC as an absolute bar to the…

**Application:** Applying this interpretation, the court found that the Applicant's own…

## Parties

- **Judges:** Harnam Singh…; L. N. G…
- **Advocates:** For the Applicant:…; For the Respondent…

## Timeline

- **April 28, 1983 — Incorporation of…**: M/s. Omax Autos Limited (Respondent) was incorporated under the provisions of the…
- **April 4, 2020 — Start of Invoice Due…**: The earliest due date for payment of invoices, after considering the credit period, as…

## 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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