# In the matter of Omni Auto Tech Private Limited C.P. (IB) No. 1258-KB-2018

> NCLT judgment dated 2019-08-01. Citation: TCN-2019-NCLT-02151. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Aug 2019
- **Citation:** TCN-2019-NCLT-02151
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/omni-auto-tech-private-limited-cp-ib-no-1258-kb-2018-aeee2e35

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Hemang Steel Traders (Operational Creditor) against Omni Auto Tech Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed an unpaid operational debt of Rs. 64,00,722/- including interest at 24% as of 09.04.2018. Despite demand, the Corporate Debtor failed to pay the outstanding amount, leading to the application.

## Facts

Hemang Steel Traders, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Omni Auto Tech Private Limited, the Corporate Debtor. The claim was for Rs. 64,00,722/- representing unpaid operational debt, including interest at 24% as of 09.04.2018. The Corporate Debtor had placed purchase orders for Carbon Steel Bars 65 RCS Grade SAE 1049, which the Operational Creditor delivered. Three invoices were raised, and partial payments were made, with the last payment on 03.07.2015. The Corporate Debtor acknowledged the debt in HST-Outstanding Bills. A demand notice under Section 8 of the I&B Code was issued on 11.04.2018. Notice sent to the Corporate Debtor was returned undelivered, leading to substituted service

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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 observed that the Operational Creditor had demonstrated the existence of an

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover

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**Application:** The Operational Creditor presented evidence of unpaid invoices, acknowledgment

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Hemang Steel…
- **Respondents:** Omni Auto Tech…

## Timeline

- **2015-07-03 — Last Pay…**: The Corporate Debtor made the last…
- **2018-04-09 — Debt Calcu…**: Unpaid operational debt…

## 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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