# In the matter of Rockwell Resources Earthmovers Private Limited C.P. (IB) No. 1733-KB-2018

> NCLT judgment dated 2019-11-25. Citation: TCN-2019-NCLT-00464. The case involves an application filed by Gainwell Commosales Private Limited (Operational…

- **Court:** NCLT
- **Order date:** 25 Nov 2019
- **Citation:** TCN-2019-NCLT-00464
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rockwell-resources-earthmovers-private-limited-cp-ib-no-1733-kb-2018-8af973d8

## Summary

### Background

The case involves an application filed by Gainwell Commosales Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Rockwell Resources Earthmovers Private Limited (Corporate Debtor). The Operational Creditor claimed that a debt of Rs. 1,17,74,231/- was due from the Corporate Debtor. The Corporate Debtor disputed the claim, alleging pre-existing disputes and unauthorized retention of a machine worth Rs. 1,30,82,744/- by the Operational Creditor. The Operational Creditor argued that the Corporate Debtor's claims were unsubstantiated and that no payment had been received after the demand notice.

## Facts

Gainwell Commosales Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Rockwell Resources Earthmovers Private Limited (Corporate Debtor). The Operational Creditor claimed that a sum of Rs. 1,17,74,231/- was due from the Corporate Debtor, inclusive of agreed interest at 18% p.a., for transactions between 28.02.2017 and 28.06.2017. The debt arose from the supply of CAT Oil and related products by the Operational Creditor in response to purchase orders issued by the Corporate Debtor. The Corporate Debtor disputed the claim, alleging that Rs. 29.00 lacs had been paid partly and that a machine worth Rs. 1,30,82,744/- was unauthorizedly

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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 Tribunal found that the Operational Creditor had submitted sufficient material to

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

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**Application:** The Tribunal applied Section 9 to the facts of the case and found that the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Gainwell Commosale…
- **Respondents:** Rockwell Resources…

## Timeline

- **2017-02-28 — Start of Transaction…**: Transactions between the Operational…
- **2017-03-22 — Damage to CAT…**: CAT Excavator 349D2 was damaged at…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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