# In the matter of UTS Infratel Private Limited C.P. (IB) No. 50-KB-2019

> NCLT judgment dated 2019-09-26. Citation: TCN-2019-NCLT-01227. Action Construction Equipment Limited, the Operational Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 26 Sept 2019
- **Citation:** TCN-2019-NCLT-01227
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uts-infratel-private-limited-cp-ib-no-50-kb-2019-438a01ff

## Summary

### Background

Action Construction Equipment Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against UTS Infratel Private Limited, the Corporate Debtor. The Operational Creditor alleged that the Corporate Debtor defaulted in payment of an outstanding debt of Rs. 5,49,061/- along with agreed interest, with the date of default being 09.10.2017. The Operational Creditor provided machinery on hire based on a work order issued by the Corporate Debtor on 12.05.2017 and raised invoices for Rs. 9,29,061.28, against which the Corporate Debtor made payments of Rs. 3,80,000.00. The last payment was made on 29.05.2017. A demand notice under Section 8 of IBC, 2016 was

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## Facts

Action Construction Equipment Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against UTS Infratel Private Limited (Corporate Debtor). The Operational Creditor provided machinery on hire to the Corporate Debtor based on a work order issued on 2017-05-12. The Operational Creditor raised invoices for Rs. 9,29,061.28, against which the Corporate Debtor made payments totaling Rs. 3,80,000.00. The last payment was made on 2017-05-29. The Corporate Debtor defaulted on an outstanding debt of Rs. 5,49,061/- along with agreed interest, with the date of default being 2017-10-09. A demand notice under Section 8 of IBC, 2016, was submitted on 2018-06-27, but

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## Issues and analysis

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

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

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**Reasoning:** The court considered the submissions made by the counsel for the Operational Creditor and

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**Interpretation:** Section 9 of the IBC, 2016, provides the framework for an operational creditor

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**Application:** The court applied the provisions of Section 9 of the IBC, 2016, to the facts of

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** ACTION CONSTRUCTIO…
- **Respondents:** UTS INFRATEL…

## Timeline

- **2017-05-12 — Work Order…**: Corporate Debtor issued a work order to…
- **2017-05-29 — Last Paymen…**: Corporate Debtor made the last payment of…

## 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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