# In the matter of Padmavati Wire and Cables Private Limited CP No. 1260-IBC-NCLT-MB-MAH-2017

> NCLT judgment dated 2017-09-05. Citation: TCN-2017-NCLT-00471. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Sept 2017
- **Citation:** TCN-2017-NCLT-00471
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/padmavati-wire-and-cables-private-limited-cp-no-1260-ibc-nclt-mb-mah-2017-af5b097b

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by M/s. Sai Trading Company (Operational Creditor) against M/s. Padmavati Wire and Cables Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for goods supplied. The petitioner issued a demand notice under section 8 of the IBC on July 11, 2017, which was duly served to the corporate debtor. The corporate debtor did not raise any dispute or objection to the demand notice.

## Facts

M/s. Sai Trading Company, the Operational Creditor, filed an application against M/s. Padmavati Wire and Cables Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor had defaulted on payments for goods supplied, specifically Aluminium Miler and plastic for Cables. The Operational Creditor had raised 12 invoices, with outstanding payments totaling Rs. 2,24,799/-, out of which the Corporate Debtor had paid Rs. 30,346/- until August 6, 2016. No further payments were received after this date. A demand notice under Section 8 of the IBC was issued on July 11, 2017, and served to the Corporate Debtor, who did not raise any dispute or objection. The Director of the Debtor

…

## Issues and analysis

### Issue 1: Whether the Petitioner has established an 'Operational Debt' and a 'Default' on the part of the …

**Ratio:** The legal principle applied is that an operational debt exists when there is a claim in

…

**Reasoning:** The court reasoned that the Operational Creditor had provided sufficient evidence,

…

**Interpretation:** The interpretation of 'Operational Debt' and 'Default' under the IBC requires

…

**Application:** In this case, the Operational Creditor provided invoices for the supply of

…

## Parties

- **Judges:** M.K. Sh…; Bhaskara Pantula…
- **Appellants:** M/s. Sai Trading…
- **Respondents:** M/s. Padmavati…

## Timeline

- **2016-08-06 — Last Payment…**: The Corporate Debtor made the last…
- **2017-07-11 — Demand Notice…**: The Operational Creditor issued a Demand Notice under Section 8 of the IBC to the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/padmavati-wire-and-cables-private-limited-cp-no-1260-ibc-nclt-mb-mah-2017-af5b097b