# In the matter of Surana Industries Ltd. TCP-95-(IB)-2017

> NCLT judgment dated 2018-01-02. Citation: TCN-2018-NCLT-01966. The case originates from a Company Petition No. 341/2016 filed before the High Court of Madras,…

- **Court:** NCLT
- **Order date:** 2 Jan 2018
- **Citation:** TCN-2018-NCLT-01966
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/surana-industries-ltd-tcp-95-ib-2017-99ae658f

## Summary

### Background

The case originates from a Company Petition No. 341/2016 filed before the High Court of Madras, which was later transferred to the National Company Law Tribunal (NCLT) Chennai Bench and renumbered as TCP/95/(IB)/CB/2017. The petition was initially filed for the winding up of Surana Industries Ltd. under Sections 433 (e) & (f), 434 (i) (a) and 439 (i) & (b) of the Companies Act 1956. The Operational Creditor, IDBI Capital Markets & Securities Ltd., sought to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. An upfront payment of Rs. 10,50,000/- was made by the Corporate Debtor to the Operational Creditor, leading to the initial disposal of the petition with liberty to revive it in case of default. Subsequently, the

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## Facts

IDBI Capital Markets & Securities Ltd. (Operational Creditor) provided advisory services to Surana Industries Ltd. (Corporate Debtor) for debt restructuring in 2013. An agreement dated 23.08.2013 was entered into, stipulating a remuneration of Rs.2,50,00,000/- plus taxes for the services. The Corporate Debtor approached Corporate Debt Restructuring (CDR) Forum to restructure its debts. The Operational Creditor sent a statutory notice dated 19.10.2015 calling upon the Corporate Debtor to pay Rs.1,81,90,000/-. An upfront amount of Rs.10.50 Lakhs was paid by the Corporate Debtor based on a settlement, but the Corporate Debtor defaulted on the balance payment. The Operational Creditor filed an affidavit under Section 9(3)(b) of the I&B Code, 2016, stating that the

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has fulfilled the requirements of law to initiate the Corporate …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency

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**Reasoning:** The court observed that the Operational Creditor had filed the necessary affidavit under

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**Interpretation:** The legal issue concerns whether the operational creditor has met all the

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**Application:** The court applied the provisions of Section 9 of the I&B Code, 2016, to the

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** IDBI Capital…
- **Respondents:** Surana Industries…

## Timeline

- **2016-09-06 — Company Petiti…**: Company Petition No. 341/2016 was filed…
- **2017-08-24 — Upfront P…**: An upfront amount of Rs.10,50,000/- was paid by the Corporate Debtor to the Operational…

## 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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