# In the matter of UTM Engineering Private Limited Company Petition No. IB-248-ND-2019

> NCLT judgment dated 2019-10-17. Citation: TCN-2019-NCLT-00934. Argentium International Private Limited filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 17 Oct 2019
- **Citation:** TCN-2019-NCLT-00934
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/utm-engineering-private-limited-company-petition-no-ib-248-nd-2019-9fa64430

## Summary

### Background

Argentium International Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against UTM Engineering Private Limited, alleging default in payment for goods supplied. The applicant claimed that the corporate debtor had placed job orders, and invoices were raised between 20.08.2017 and 18.01.2018, but the corporate debtor failed to make payments. A demand notice was issued on 20.09.2018 under Section 8 of the IBC, which the corporate debtor neither replied to nor made any payment towards the outstanding dues.

## Facts

Argentium International Private Limited (the applicant/operational creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against UTM Engineering Private Limited (the respondent/corporate debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The applicant claimed that the corporate debtor had placed job orders for the supply of goods, and the applicant had supplied the goods accordingly. Invoices were raised between 20.08.2017 and 18.01.2018, but the corporate debtor failed to make payments, resulting in outstanding dues of Rs. 49,17,591.00/-. A demand notice was issued on 20.09.2018 under Section 8 of the IBC, which was duly delivered to the corporate debtor. The corporate debtor did not reply to the notice

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

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

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**Reasoning:** The NCLT observed that the applicant had supplied goods to the corporate debtor, raised

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

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**Application:** In this case, the applicant, Argentium International Private Limited, was an

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## Parties

- **Judges:** DEEPTI M…; HEMANT KUMAR…
- **Appellants:** Argentium…
- **Respondents:** UTM ENGINEERING…

## Timeline

- **2017-08-20 — Invoice Perio…**: Start of the period during which Argentium International Private Limited raised invoices…
- **2018-01-18 — Invoice Per…**: End of the period during which Argentium International Private Limited raised invoices…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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