# In the matter of U T Ltd. CP (IB) No. 08-KB-2018

> NCLT judgment dated 2018-04-19. Citation: TCN-2018-NCLT-01527. The case involves an application filed by M/s. Bango Industries, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 19 Apr 2018
- **Citation:** TCN-2018-NCLT-01527
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/u-t-ltd-cp-ib-no-08-kb-2018-55ccb6d6

## Summary

### Background

The case involves an application filed by M/s. Bango Industries, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating the Insolvency Resolution Process against the respondent, M/s U T Ltd., the Corporate Debtor. The operational creditor claimed that the corporate debtor failed to pay outstanding dues for goods supplied and services rendered, despite repeated demands and notices.

## Facts

M/s. Bango Industries, an operational creditor engaged in mechanical engineering work and supply of machine parts, filed an application against M/s U T Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The applicant claimed that the corporate debtor had outstanding dues for goods supplied and services rendered between 2011 and 2012, with invoices accepted by the corporate debtor. While the corporate debtor made some part payments, a significant amount remained unpaid. The applicant issued a demand notice on 18/09/2017, but the corporate debtor failed to discharge the debt. The corporate debtor contended that the claim was disputed, barred by limitation, and that the applicant was not an operational creditor. The corporate debtor

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The Tribunal found that the applicant had complied with the provisions of Section 9 of

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The Tribunal applied Section 9 to the facts of the case and found that the

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Appellants:** M/S BANGO…
- **Respondents:** M/s U T…

## Timeline

- **2011-07-01 — Bills Ra…**: Applicant raised bills on the corporate…
- **2012-12-01 — Bills Acc…**: Bills raised between July 2011 and December…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(20) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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