# In the matter of Sachin Electricals Private Limited  IB-2069-ND-2019

> NCLT judgment dated 2021-04-06. Citation: TCN-2021-NCLT-02460. Nangalia Bros. Pvt. Ltd., an Operational Creditor (OC), filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 6 Apr 2021
- **Citation:** TCN-2021-NCLT-02460
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sachin-electricals-private-limited-ib-2069-nd-2019-5b1f0b11

## Summary

### Background

Nangalia Bros. Pvt. Ltd., an Operational Creditor (OC), filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Sachin Electricals Private Limited, the Corporate Debtor (CD). The OC claimed a default of Rs 60,42,979 as of 2019-02-28, plus interest, for goods supplied. The CD issued purchase orders in 2017, and the OC supplied the goods, raising invoices. The CD also issued cheques for payment, which were dishonored, leading to the OC issuing notices under Section 138 of the N.I. Act, 1881. The CD acknowledged its liability in a reply dated 2018-06-09 and assured the OC of releasing outstanding dues via emails. The OC issued a demand notice under Section 8 of the IBC

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## Facts

Nangalia Bros. Pvt. Ltd. (Operational Creditor) claimed Sachin Electricals Private Limited (Corporate Debtor) defaulted on a payment of Rs 60,42,979 as of 2019-02-28, plus interest, for goods supplied. The Corporate Debtor issued purchase orders on 2017-09-14 and 2017-09-21 for the supply of wires, with payment terms of '100% through 60 days PDC'. The Operational Creditor supplied the goods and raised invoices dated 2017-09-21, 2017-09-24, and 2017-10-13. The Corporate Debtor issued three cheques for payment, which were dishonored. The Operational Creditor issued notices under Section 138 of the N.I. Act, 1881, on 2018-06-04. The Corporate Debtor acknowledged its liability in a reply dated 2018-06-09, stating they would clear all outstanding dues. The Operational

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## Issues and analysis

### Issue 1: Whether the Operational Creditor (Nangalia Bros. Pvt. Ltd.) has met the requirements under Section …

**Ratio:** Section 9 of the IBC outlines the procedure for an operational creditor to initiate CIRP.

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**Reasoning:** The court reasoned that the Operational Creditor had provided sufficient evidence of the

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**Interpretation:** Section 9 is interpreted to provide a mechanism for operational creditors to

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

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Nangalia Bros.…
- **Respondents:** Sachin Electricals…

## Timeline

- **2017-09-14 — Purchase Order…**: The Corporate Debtor issued purchase…
- **2017-09-21 — Invoices…**: The Operational Creditor supplied…

## 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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