# In the matter of Teamwork Cables Pvt. Ltd. C.P. (I.B) No. 166-NCLT-AHM-2018

> NCLT judgment dated 2019-12-20. Citation: TCN-2019-NCLT-00029. BLS Polymers Limited, an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 20 Dec 2019
- **Citation:** TCN-2019-NCLT-00029
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/teamwork-cables-pvt-ltd-cp-ib-no-166-nclt-ahm-2018-1cf318bb

## Summary

### Background

BLS Polymers Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Teamwork Cables Private Limited, the corporate debtor, for outstanding dues. The operational creditor claimed that the corporate debtor had failed to make payments for goods supplied, leading to a total outstanding amount of Rs. 1,33,49,908/- inclusive of interest calculated till 26.03.2018. The corporate debtor acknowledged the debt through an e-mail dated 26.11.2017 and an MOU dated 05.12.2017, but failed to adhere to the payment terms outlined in the MOU. The operational creditor issued a demand notice on 19.02.2018, which went unanswered.

## Facts

BLS Polymers Limited (operational creditor) supplied goods to Teamwork Cables Private Limited (corporate debtor) based on purchase orders. The operational creditor raised ten invoices from 16.06.2015 to 04.02.2017, totaling Rs. 95,68,463.00. The corporate debtor made a part payment of Rs. 8,22,500/-, leaving an outstanding amount of Rs. 87,45,963/-. The operational creditor claimed interest at 18% per annum, resulting in a total claim of Rs. 1,33,49,908/- as of 26.03.2018. The corporate debtor acknowledged the debt in an e-mail dated 26.11.2017 and entered into an MOU on 05.12.2017, agreeing to pay Rs. 50,00,000/- by January 2018 and the remainder through business transactions. The corporate debtor failed to make any payments under the MOU. The operational creditor

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## Issues and analysis

### Issue 1: Whether there is an 'operational debt' as defined …

**Ratio:** Section 4 of the Insolvency and Bankruptcy Code, 2016 stipulates that the minimum amount

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**Reasoning:** The NCLT examined the invoices and other documents submitted by the operational creditor

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**Interpretation:** The interpretation of 'operational debt' and the minimum threshold for

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**Application:** The NCLT applied the definition of 'operational debt' and the threshold

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** BLS Polymers…
- **Respondents:** M/s Teamwork…
- **Advocates:** Ravi P…; Krishna Mohan…; +5 more

## Timeline

- **2015-06-05 — Purchase…**: Corporate Debtor placed purchase…
- **2017-02-04 — Purchase…**: Corporate Debtor placed purchase…

## 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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