# In the matter of Triveni Engineering & Industries Ltd. CP No. (IB)-144-ALD-2017

> NCLT judgment dated 2018-04-18. Citation: TCN-2018-NCLT-01535. The case involves a Company Petition (IB) No. 144/ALD/2018 filed under Section 9 of the…

- **Court:** NCLT
- **Order date:** 18 Apr 2018
- **Citation:** TCN-2018-NCLT-01535
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/triveni-engineering-industries-ltd-cp-no-ib-144-ald-2017-cc05091f

## Summary

### Background

The case involves a Company Petition (IB) No. 144/ALD/2018 filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Kirloskar Electric Company Limited (Operational Creditor) against Triveni Engineering & Industries Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed an outstanding debt of Rs. 30,54,046/- due to the supply of transformers. The corporate debtor disputed the claim, citing non-compliance with contractual obligations by the operational creditor, specifically regarding the provision of a performance bank guarantee (PBG). The NCLT Allahabad Bench heard the matter.

## Facts

Kirloskar Electric Company Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Triveni Engineering & Industries Limited, the corporate debtor, claiming an outstanding debt of Rs. 30,54,046/-. The debt arose from the supply of transformers based on purchase orders. The operational creditor supplied the transformers and raised invoices. A letter of credit was issued favouring the operational creditor, and a performance bank guarantee (PBG) was required as per the purchase order. The operational creditor issued a bank guarantee, but the corporate debtor was not satisfied with a particular clause and requested amendments via email dated 20.04.2017. The operational creditor expressed inability to

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## Issues and analysis

### Issue 1: Whether a dispute existed between the Operational Creditor and the Corporate Debtor before the …

**Ratio:** The principle established by the Supreme Court in Mobilox Innovations Private Limited v/s

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**Reasoning:** The NCLT Allahabad Bench reasoned that the exchange of emails and letters between the

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**Interpretation:** The interpretation of Section 8 and 9 of the IBC, 2016, along with the guidance

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**Application:** In this case, the court applied the ratio by examining the factual evidence of

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## Parties

- **Judges:** SH. V.P.…; Ms Saroj R…
- **Appellants:** Kirloskar…
- **Respondents:** Triveni Engineerin…
- **Advocates:** Rishi…; Diptiman…

## Timeline

- **2017-03-27 — Invoice…**: Operational creditor raised invoices on 27.03.2017 with invoice numbers 1705001511,…
- **2017-03-23 — Letter of…**: Letter of Credit vide ILC No 0051NLCU17039409 dated 23.03.2017 drawn on Indusland Bank…

## 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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