# In the matter of Technofab Engineering Limited (IB)-1670(ND)2019

> NCLT judgment dated 2020-01-30. Citation: TCN-2020-NCLT-02129. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 30 Jan 2020
- **Citation:** TCN-2020-NCLT-02129
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/technofab-engineering-limited-ib-1670nd2019-a8fbb6eb

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s Consolidated Shipping Line (India) Pvt. Ltd. (Operational Creditor) against M/s Technofab Engineering Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for freight services rendered.

## Facts

M/s Consolidated Shipping Line (India) Pvt Ltd, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Technofab Engineering Limited, the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP) due to unpaid operational debt. The operational creditor is a global freight forwarder. In 2018, the corporate debtor approached the operational creditor for ocean freight requirements. The corporate debtor submitted a credit application requesting a 60-day sanction period from the invoice date. The last payment made by the corporate debtor was Rs. 8,50,000 on 06.11.2018. The balance principal liability was Rs. 12,81,710 as of 13.01.2019, plus 18% interest per annum. A demand notice was sent

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## Issues and analysis

### Issue 1: Whether the present Petition is complete and establishes the default in payment of the Operational …

**Ratio:** Section 9(5) of the IBC states that if the Adjudicating Authority is satisfied that a

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**Reasoning:** The court found that the Operational Creditor had presented sufficient evidence to

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**Interpretation:** Section 9(5) of the IBC provides the criteria for admitting an application for

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**Application:** The court applied Section 9(5) of the IBC to the facts of the case, finding

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## Parties

- **Judges:** Ina Mal…; L. N. G…
- **Appellants:** Consolidated…
- **Respondents:** Technofab…

## Timeline

- **2018-01-01 — Corporate Debtor…**: During the year 2018, the Corporate Debtor approached the Operational Creditor with…
- **2018-11-06 — Last Payment by…**: The last payment made by the Corporate Debtor to the Operational Creditor was Rs.…

## 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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