# In the matter of Prarthna Private Limited CP(IB)-1327-MB-2020

> NCLT judgment dated 2021-11-26. Citation: TCN-2021-NCLT-00390. The case involves a petition filed by Makalu Trading Limited, the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 26 Nov 2021
- **Citation:** TCN-2021-NCLT-00390
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prarthna-private-limited-cpib-1327-mb-2020-09a6b683

## Summary

### Background

The case involves a petition filed by Makalu Trading Limited, the Operational Creditor, under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC), to initiate Corporate Insolvency Resolution Process (CIRP) against Prarthna Private Limited, the Corporate Debtor, due to non-payment of outstanding dues. The Operational Creditor claimed a total sum of Rs. 32,34,16,663/- as outstanding for the supply of steel and allied materials. The Corporate Debtor admitted the liability in its reply.

## Facts

Makalu Trading Limited (Operational Creditor) filed a petition under Section 9 of the IBC to initiate CIRP against Prarthna Private Limited (Corporate Debtor) for non-payment of Rs. 32,34,16,663/-. The debt arose from the supply of steel and allied materials by the Operational Creditor to the Corporate Debtor. The Operational Creditor submitted invoices, ledger accounts, and balance confirmation certificates as evidence. The Corporate Debtor confirmed the outstanding amount in balance confirmation certificates dated 01.04.2018 and 01.04.2019. A demand notice was issued on 21.02.2020. The Corporate Debtor admitted the liability in its reply to the petition. The date of default was 29.02.2020. The Corporate Debtor is incorporated on 07.04.1981.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of the outstanding operational debt to the …

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

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**Reasoning:** The Corporate Debtor admitted the liability of Rs. 32,34,16,663/-. The Operational

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if an operational debt exists,

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**Application:** In this case, the Corporate Debtor admitted the liability, and the Operational

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## Parties

- **Judges:** RAJESH S…; SUCHITRAKAN…
- **Appellants:** Makalu Trading…
- **Respondents:** PRARTHNA PRIVATE…

## Timeline

- **1981-04-07 — Corporate Debtor…**: Prarthna Private Limited…
- **2016-12-21 — Invoice Perio…**: Start of the period during which invoices…

## 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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