# In the matter of Srivari Alloys India Private Limited CP-1258-IB-2018

> NCLT judgment dated 2019-07-16. Citation: TCN-2019-NCLT-02510. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Jul 2019
- **Citation:** TCN-2019-NCLT-02510
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/srivari-alloys-india-private-limited-cp-1258-ib-2018-01a6dcfe

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by TCP Limited (Operational Creditor) against Srivari Alloy India Private Limited (Corporate Debtor). The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, declare a moratorium, and appoint an Interim Resolution Professional (IRP). The Operational Creditor and Corporate Debtor entered into a Power Purchase Agreement initially for 24 months from January 2016 to October 2017, wherein the Operational Creditor agreed to supply power to the Corporate Debtor. The Corporate Debtor was proceeded ex-parte.

## Facts

TCP Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Srivari Alloy India Private Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor and the Corporate Debtor entered into a Power Purchase Agreement initially for 24 months from January 2016 to October 2017, wherein the Operational Creditor agreed to supply 10,08,000 Units (1.4 MW/Hr) of power per month to the Corporate Debtor. The Operational Creditor claimed Rs. 14,47,135/- as principal along with interest at 24% per annum from 06.02.2016. The Operational Creditor issued a Demand Notice dated 11.07.2018 under Section 8 of the I&B Code, 2016, which was delivered on 17.07.2019, but

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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 observed that the Operational Creditor had complied with the requirements of

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

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**Application:** The Operational Creditor demonstrated compliance with Section 9 by providing

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** TCP…
- **Respondents:** Srivari Alloy…; SRIVARI ALLOY…
- **Advocates:** Vishnu…; Rahul B…; +1 more

## Timeline

- **2016-01-05 — Power Purchase…**: Operational Creditor and Corporate Debtor…
- **2016-02-06 — Interest Calculation…**: Interest on the principal amount…

## 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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