# In the matter of Universal Construction machinery and Equipment Limited C.P. No. 2816-IBC-MB-2019

> NCLT judgment dated 2021-07-26. Citation: TCN-2021-NCLT-01608. The case involves a petition filed by Mr. Vivek Agarwal, Proprietor of M/s Premier Steels…

- **Court:** NCLT
- **Order date:** 26 Jul 2021
- **Citation:** TCN-2021-NCLT-01608
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/universal-construction-machinery-and-equipment-limited-cp-no-2816-ibc-mb-2019-1840f35e

## Summary

### Background

The case involves a petition filed by Mr. Vivek Agarwal, Proprietor of M/s Premier Steels (Operational Creditor), under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Universal Construction Machinery and Equipment Limited (Corporate Debtor). The Operational Creditor alleges that the Corporate Debtor defaulted in making payment for goods supplied. The petition was filed before the Adjudicating Authority because the Corporate Debtor failed to pay Rs. 21,63,588/-.

## Facts

In 2012, Universal Construction Machinery and Equipment Limited (Corporate Debtor) contacted M/s Premier Steels (Operational Creditor) for the supply of Iron & Steel Materials. The Corporate Debtor placed purchase orders for goods, which were delivered to its site in Rudrapur. The Operational Creditor supplied goods under three invoices, totaling Rs. 21,63,588/-, which were duly delivered and used by the Corporate Debtor. The debt fell due on 13.06.2018, the last date of the invoices. The Corporate Debtor did not raise any dispute regarding the quantity, specifications, or quality of the goods. The Operational Creditor served a demand notice on 30.04.2019, which was received by the Corporate Debtor, but no reply or defense was furnished. The petition was filed on

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is admissible under Section 9 of the …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The court considered the invoices, delivery reports, and ledger accounts submitted by the

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover debts

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**Application:** The court found that the Operational Creditor had met the requirements of

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Vivek Ag…
- **Respondents:** UNIVERSAL…

## Timeline

- **2012-01-01 — Initial C…**: Corporate Debtor contacted Operational…
- **2018-06-13 — Debt Fel…**: Last date of invoices, marking…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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