# In the matter of Venture Power Systems India Private Limited IBA-1449-2019

> NCLT judgment dated 2021-10-04. Citation: TCN-2021-NCLT-00877. M/s. SH Haryana Wires Limited, an operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 4 Oct 2021
- **Citation:** TCN-2021-NCLT-00877
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/venture-power-systems-india-private-limited-iba-1449-2019-9655ccba

## Summary

### Background

M/s. SH Haryana Wires Limited, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Venture Power Systems India Private Limited, the corporate debtor, due to unpaid operational debt. The operational creditor claimed that the corporate debtor defaulted on payments for enamelled copper wires supplied between May 2018 and June 2019, amounting to Rs. 1,51,13,149/- inclusive of interest. The corporate debtor disputed the application, arguing that the demand notice was invalid and that a pre-existing dispute existed between the parties.

## Facts

M/s. SH Haryana Wires Limited (Operational Creditor) supplied enamelled copper wires to M/s. Venture Power Systems India Private Limited (Corporate Debtor), a Special Economic Zone Company. The Operational Creditor raised approximately 20 invoices between 2018-05-02 and 2019-06-27, totaling Rs. 1,51,13,149/- including 18% interest. The Corporate Debtor defaulted on the first pending invoice dated 2018-05-02. The Operational Creditor sent a demand notice in Form 4, which the Corporate Debtor disputed, claiming it should have been in Form 3. The Corporate Debtor also argued a pre-existing dispute existed, citing email conversations. The Operational Creditor attached copies of purchase orders, invoices, and a demand notice to the application. The Corporate Debtor issued a

…

## Issues and analysis

### Issue 1: Whether the Demand Notice under Section 8 of IBC, 2016 served by the Operational Creditor as per …

**Ratio:** Section 8(1) of the IBC, 2016, read with Rule 5 of the Insolvency and Bankruptcy

…

**Reasoning:** The NCLT reasoned that the Operational Creditor had attached the following documents

…

**Interpretation:** The interpretation of Section 8 of the IBC and Rule 5 of the Rules is that a

…

**Application:** In this case, the Operational Creditor sent the Demand Notice to the Corporate

…

## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** M/s. SH Haryana…
- **Respondents:** M/s. Venture…

## Timeline

- **2018-05-02 — Date of First Pending…**: The date of default is mentioned as on…
- **2018-05-02 — Invoices…**: Close to 20 invoices raised between 02.05.2018 and 27.06.2019 to the tune of Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/venture-power-systems-india-private-limited-iba-1449-2019-9655ccba