# In the matter of Powercon Projects & Association Limited CP (IB) No. 389-KB-2018

> NCLT judgment dated 2018-07-10. Citation: TCN-2018-NCLT-01163. The case pertains to an application filed by C.G. Power and Industrial Solutions Limited…

- **Court:** NCLT
- **Order date:** 10 Jul 2018
- **Citation:** TCN-2018-NCLT-01163
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/powercon-projects-association-limited-cp-ib-no-389-kb-2018-c2172e9a

## Summary

### Background

The case pertains to an application filed by C.G. Power and Industrial Solutions Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Powercon Projects & Association Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP) due to non-payment of dues. The Operational Creditor claimed that the Corporate Debtor defaulted on payments amounting to Rs. 73,68,329.80, which included a principal amount of Rs. 41,84,336.40 and interest of Rs. 31,83,993.40. The Corporate Debtor failed to appear despite receiving notice, and was declared ex parte.

## Facts

C.G. Power and Industrial Solutions Limited (Operational Creditor) supplied goods (transformers and allied products) to Powercon Projects & Association Limited (Corporate Debtor) against purchase order no.PO/MEL/PPAL-01UL/OPTC/IT (145KV)/CGL/09/99 dated 01.05.2012. The Operational Creditor raised invoices totaling Rs.45,93,492.88. The Corporate Debtor made a part payment of Rs.4,09,156.48 in May 2012 against one invoice. Six invoices remained unpaid. After adjusting the part payment, Rs.41,84,336.40 remained due. The Corporate Debtor admitted to the outstanding demand of Rs.41,84,336/- in a letter dated 30th June 2015. The Operational Creditor issued a Demand Notice dated 15.06.2017 demanding payment of Rs.41,84,336.40 plus interest. The Corporate Debtor

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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 noted that the Operational Creditor had supplied goods to the Corporate Debtor

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** Jinan…
- **Appellants:** C.G. Power and…
- **Respondents:** Powercon Projects…

## Timeline

- **2012-05-01 — Purchase…**: Corporate Debtor placed purchase order no.PO/MEL/PPAL-01UL/OPTC/IT (145KV)/CGL/09/99 with…
- **2012-05-01 — Part Pay…**: Corporate Debtor made a part payment of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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