# 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-00462. The case involves an application filed by Gainwell Commosales Private Limited (Operational…

- **Court:** NCLT
- **Order date:** 25 Nov 2019
- **Citation:** TCN-2019-NCLT-00462
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rockwell-resources-earthmovers-private-limited-cp-ib-no-1733-kb-2018-a8242ecf

## 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 the Corporate Debtor defaulted on a payment of Rs. 1,17,74,231/-. The Corporate Debtor disputed the claim, alleging that a sum of Rs. 29.00 lacs had been partly paid and that the Operational Creditor had unauthorizedly retained a machine worth Rs. 1,30,82,744/- causing them significant losses. The Operational Creditor denied these allegations.

## 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 a default of Rs. 1,17,74,231/- inclusive of interest, arising from transactions between 28.02.2017 and 28.06.2017 for the supply of CAT Oil and related products. The Corporate Debtor disputed the claim, stating that Rs. 29.00 lacs had been partly paid and that the Operational Creditor had unauthorizedly retained a machine worth Rs. 1,30,82,744/-, causing them losses. The Corporate Debtor also stated that there were pre-existing disputes. The Operational Creditor

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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 found that the Operational Creditor's application was complete in all respects

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

## Timeline

- **2017-02-28 — Start of Transaction…**: Transactions between the Operational…
- **2017-03-22 — Damage to Leased…**: CAT Excavator 349D2, leased by 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)

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