# In the matter of Paramex Transformers Limited IB-1125(ND)-2019

> NCLT judgment dated 2019-11-26. Citation: TCN-2019-NCLT-00454. M/s Santosh Associates filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 26 Nov 2019
- **Citation:** TCN-2019-NCLT-00454
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/paramex-transformers-limited-ib-1125nd-2019-ad22c3b9

## Summary

### Background

M/s Santosh Associates filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Paramex Transformers Limited due to an alleged default in settling an amount of Rs. 7,21,487, which includes interest on the supply of transformer oil. The applicant, M/s Santosh Associates, was the distributor of transformer oil to Indian Oil Corporation (Marketing Division), for which the respondent, M/s Paramex Transformers Limited, had placed an order.

## Facts

M/s Santosh Associates, the applicant, is a distributor of transformer oil. M/s Paramex Transformers Limited, the respondent, placed an order for the supply and delivery of transformer oil to Indian Oil Corporation (Marketing Division) through the applicant. On 15.07.2015, the respondent placed the order. On 29.07.2015, the applicant bought the transformer oil from Indian Oil Corporation, Kolkata, pursuant to the respondent's order. The respondent authorized M/s Shanti Roadlines to deliver the transformer oil to Noida from Kolkata, and paid freight charges of Rs. 1,12,200. The applicant paid Rs. 10,23,967 to Indian Oil Corporation for the transformer oil. After delivery on 03.08.2015, the applicant raised an invoice for Rs. 10,23,967 in the respondent's name. The

…

## Issues and analysis

### Issue 1: Whether the Applicant has established the existence of debt and default on the part of the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

…

**Reasoning:** The court perused the documents submitted by the applicant, including invoices, delivery

…

**Interpretation:** Section 9 of the IBC is interpreted to mean that if an operational creditor can

…

**Application:** In this case, the applicant provided evidence of the unpaid invoice amount,

…

## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** M/s. Santosh…
- **Respondents:** Paramex Transforme…

## Timeline

- **2015-07-15 — Order Pla…**: The Respondent, Paramex Transformers Limited, placed an order for the supply and delivery…
- **2015-07-29 — Purchase of Transformer…**: The Applicant, Santosh Associates, bought the transformer oil from Indian Oil…

## 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/paramex-transformers-limited-ib-1125nd-2019-ad22c3b9