# In the matter of Orbit Electromech India Private Limited

> NCLT judgment dated 26 May 2025. Citation: TCN-2025-NCLT-00046. This case involves an application filed by Ramesh Bokadia, the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 26 May 2025
- **Citation:** TCN-2025-NCLT-00046
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/orbit-electromech-india-private-limited-f1a7388c

## Summary

### Background

This case involves an application filed by Ramesh Bokadia, the Operational Creditor, under Sections 8 and 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Orbit Electromech India Pvt Ltd., the Corporate Debtor. The application was filed due to the Corporate Debtor's alleged non-payment of an operational debt totaling Rs. 1,27,97,715/-, which includes interest. The principal amount of the debt is Rs. 1,03,94,983, with an additional Rs. 24,02,534/- in interest as of July 5, 2019.

## Facts

Ramesh Bokadia, the Operational Creditor, filed a petition under Sections 8 & 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Orbit Electromech India Pvt Ltd., the Corporate Debtor. The petition, originally filed as C.P. (IB)/2814/MB/2019, was restored on January 6, 2025. The total operational debt claimed was Rs. 1,27,97,715/-, inclusive of interest, with the principal amount being Rs. 1,03,94,983 and interest of 18% amounting to Rs. 24,02,534/- as of July 5, 2019.

## Issues and analysis

### Issue 1: Whether the Operational Creditor is entitled…

**Ratio:** A claim for interest on delayed payments is not permissible in CIRP proceedings unless…

**Reasoning:** The court reasoned that neither the purchase order issued by the Applicant nor the…

**Interpretation:** The court interpreted the contractual relationship between the parties to mean…

**Application:** Applying this interpretation, the court disallowed the Operational Creditor's…

## Parties

- **Judges:** Prabhat…; V.G. B…
- **Advocates:** Rohan Ag…; Avinash R.…; +1 more

## Timeline

- **February 18, 2019 — Part Pay…**: The Corporate Debtor made a part payment of…
- **July 5, 2019 — Debt Calculat…**: The interest on the outstanding debt was…

## 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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