# In the matter of Varnika Industries  Private Limited CP (IB) No. 229-9-HDB-2019

> NCLT judgment dated 2019-07-04. Citation: TCN-2019-NCLT-02685. The petition was filed by Serwel Electronics Private Limited against Varnika Industries Private…

- **Court:** NCLT
- **Order date:** 4 Jul 2019
- **Citation:** TCN-2019-NCLT-02685
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varnika-industries-private-limited-cp-ib-no-229-9-hdb-2019-4dff79ee

## Summary

### Background

The petition was filed by Serwel Electronics Private Limited against Varnika Industries Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to a default in payment of Rs. 69,46,928/- towards invoices raised by Serwel Electronics. The operational creditor, Serwel Electronics, claimed that Varnika Industries failed to make payments for the supply of Copper Strip, CRGO Core, Clamps, CRGO Lamination, Shaft, Variacs of various sizes, Frames of various sizes and other related material for manufacturing of transformers and stabilizers, based on purchase orders dated 15.02.2018, 05.03.2018 and 09.03.2018. Serwel Electronics had provided invoices dated 23/02/2018, 27/02/2018, 06/03/2018, 07/03/2018, 09/03/2018, 10/03/2019, 12/03/2019, 14/03/2018,

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## Facts

Serwel Electronics Private Limited filed a petition against Varnika Industries Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to unpaid invoices totaling Rs. 69,46,928/-. Varnika Industries had placed orders for Copper Strip, CRGO Core, Clamps, CRGO Lamination, Shaft, Variacs of various sizes, Frames of various sizes and other related material for manufacturing of transformers and stabilizers. Serwel Electronics provided invoices for these supplies between February 23, 2018, and April 4, 2018. Varnika Industries failed to make payments despite repeated requests from Serwel Electronics. Serwel Electronics issued a demand notice in Form 3, which was served on Varnika Industries. The date of default is 30.03.2018. Varnika Industries did

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## Issues and analysis

### Issue 1: Whether the application made by the operational …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for an

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**Reasoning:** The Adjudicating Authority determined that the operational creditor, Serwel Electronics,

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**Interpretation:** The completeness of the application is a prerequisite for the admission of the

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**Application:** In this case, the operational creditor provided all necessary documents,

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## Parties

- **Judges:** Ratakonda…; Ratakonda…
- **Appellants:** Servel Electronics…
- **Respondents:** Varnika Industries…; Varnika Industries…

## Timeline

- **2019-04-23 — Hearing…**: Hearing of th…
- **2019-05-16 — Hearing…**: Hearing of th…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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