# In the matter of Sri Karunambikai Mills Private Limited CP-1083-(IB)-CB-2018

> NCLT judgment dated 2018-09-26. Citation: TCN-2018-NCLT-00710. The case involves an application filed by M/s. Annai Wind Farms India Private Limited…

- **Court:** NCLT
- **Order date:** 26 Sept 2018
- **Citation:** TCN-2018-NCLT-00710
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-karunambikai-mills-private-limited-cp-1083-ib-cb-2018-ab3fffe7

## Summary

### Background

The case involves an application filed by M/s. Annai Wind Farms India Private Limited (Operational Creditor) against M/s. Sri Karunambikai Mills Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor is engaged in the business of electricity generation from wind. The Respondent/Corporate Debtor approached the petitioner and expressed its requirements for supply of electricity for the spinning mill run by the Respondent/Corporate Debtor. The Petitioner/OC has started supplying the electricity from the year 2005 and maintained a running bank account with respect to the supply of electricity made to the Respondent/CD. The payments were made by the Respondent/CD on an Adhoc basis from time to time.

## Facts

M/s. Annai Wind Farms India Private Limited (Operational Creditor) filed an application against M/s. Sri Karunambikai Mills Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to unpaid operational debt. The Operational Creditor supplied electricity to the Corporate Debtor's spinning mill since 2005. Invoices were raised for Rs. 34,64,016/- which was due and payable by the Respondent as on 01.04.2015. The last invoice was raised on 31.05.2016. The Corporate Debtor made a last payment of Rs. 5,81,755/- on 24.05.2017. A balance confirmation of Rs. 38,53,278/- was issued by the Corporate Debtor on 08.05.2018. Two cheques for Rs. 3,00,000/- each, issued by the Corporate Debtor, were dishonored due to insufficient funds. A

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## Issues and analysis

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

**Ratio:** The legal principle applied is that if a corporate debtor defaults in making payments of

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**Reasoning:** The Adjudicating Authority was satisfied that the Operational Creditor had clearly made

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**Interpretation:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational

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**Application:** The Operational Creditor presented invoices, a demand notice, financial

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## Parties

- **Judges:** CH. MOHD SHARIEF…; S. VIJAYARA…
- **Appellants:** M/s. ΑΝΝΑΙ WIND…
- **Respondents:** M/s. SRI KARUNAMBI…

## Timeline

- **2005-01-01 — Electricity Supply…**: The Petitioner/OC started supplying…
- **2015-04-01 — Debt Due…**: Rs. 34,64,016/- was due and payable…

## 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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