# In the matter of Titanium Tantalum Products Ltd. TCP-413-(IB)-2017

> NCLT judgment dated 2017-11-27. Citation: TCN-2017-NCLT-00133. The case involves a petition filed before the High Court of Madras on 2016-12-10, which was…

- **Court:** NCLT
- **Order date:** 27 Nov 2017
- **Citation:** TCN-2017-NCLT-00133
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/titanium-tantalum-products-ltd-tcp-413-ib-2017-6cb0c451

## Summary

### Background

The case involves a petition filed before the High Court of Madras on 2016-12-10, which was later transferred to the National Company Law Tribunal (NCLT) and renumbered as TCP/413/(IB)/CB/2017. The petition was filed under Sections 433 (e) & (f), 434 (i) (a) and 439 (i) & (b) of the Companies Act 1956 for winding up the Respondent Company. The Operational Creditor claimed an outstanding debt of Rs.3,57,62,497/- along with 21% interest as on 2015-09-30. The debt arose from the Corporate Debtor's purchase order dated 2010-02-16 for electronic items, specifically a Transformer 6.6 KV and Rectifier 150 VDC, 3500 ADC, for Rs.1,75,00,000/-. The Operational Creditor supplied the material and raised an invoice for Rs.1,96,88,550, but no payment was made.

## Facts

The Kerala State Electronics Development Corporation Ltd (Operational Creditor) filed a petition against Titanium Tantalum Products Ltd (Corporate Debtor) for outstanding debt. The debt originated from a purchase order placed by the Corporate Debtor on 2010-02-16 for electronic items, specifically a Transformer and Rectifier, amounting to Rs.1,75,00,000/-. The Operational Creditor supplied the materials and raised an invoice for Rs.1,96,88,550/-, but no payment was made. The Operational Creditor issued a demand notice on 2012-03-09, to which the Corporate Debtor replied on 2012-03-24, agreeing to pay the amount. A notice under Sections 433 and 434 of the Companies Act 1956 was given on 2015-09-30, with a reply from the Corporate Debtor on 2015-11-15. The Operational

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of the outstanding debt as claimed by the …

**Ratio:** The legal principle is that if a corporate debtor fails to pay an outstanding debt to an

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**Reasoning:** The court reasoned that based on the documents placed on file and the arguments

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**Interpretation:** This issue involves the interpretation of the IBC provisions related to default

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**Application:** The court applied the ratio to the facts by examining the purchase order,

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Appellants:** B. Dhan…
- **Respondents:** Titanium Tantalum…

## Timeline

- **2010-02-16 — Purchase…**: Corporate Debtor placed a…
- **2012-03-09 — Demand N…**: Operational Creditor issued a demand…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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