# In the matter of Venus Controls & Switchgear Private Limited C.P. (IB) No. 1793-KB-2019

> NCLT judgment dated 2021-11-25. Citation: TCN-2021-NCLT-00405. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Nov 2021
- **Citation:** TCN-2021-NCLT-00405
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/venus-controls-switchgear-private-limited-cp-ib-no-1793-kb-2019-6134410c

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Utkal Engineering Enterprises (Operational Creditor) against Venus Controls & Switchgear Private Limited (Corporate Debtor) for failing to pay a sum of Rs. 29,23,354.00. The Operational Creditor supplied PSC poles to the Corporate Debtor based on a Letter of Intent. Disputes arose regarding the quality of the poles and the payment of outstanding dues.

## Facts

Utkal Engineering Enterprises (Operational Creditor) supplied PSC poles to Venus Controls & Switchgear Private Limited (Corporate Debtor) based on a Letter of Intent dated 26.12.2016. The Operational Creditor manufactured 1000 PSC poles, and after inspection by the Corporate Debtor and NTPC Limited, 990 poles were found to be in good order. 17 poles were damaged in transit, and the remaining 973 poles were accepted. The Operational Creditor raised invoices for Rs. 22,86,550. The Corporate Debtor made a part payment of Rs. 5,00,000 on 31.03.2017. Subsequent cheques issued by the Corporate Debtor were dishonored. The Operational Creditor raised a debit note for VAT amounting to Rs. 2,75,122. The Corporate Debtor sent a letter on 04.07.2017 proposing a settlement,

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## Issues and analysis

### Issue 1: Whether the Company Petition is maintainable given that the Operational Creditor is an unregistered …

**Ratio:** A partnership firm is entitled to file an application under section 9 of the Code as an

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**Reasoning:** The court stated that this question has been answered numerable times and it is now a

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**Interpretation:** The interpretation of Section 69(2) of the Partnership Act, 1962, in the

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**Application:** The court applied the settled law to the present case, holding that the fact

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** UTKAL ENGINEERING…
- **Respondents:** Venus Controls &…

## Timeline

- **1989-07-05 — Incorporation of…**: Venus Controls & Switchgear Private Limited…
- **2016-12-26 — Letter of…**: Corporate Debtor placed a Letter of Intent bearing no. VCSPL/DEOGARH-001/UEE/16-17/0001…

## 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)

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