# In the matter of Ambica Polad Private Limited C.P. No. 749-IBC-MB-2019

> NCLT judgment dated 2022-10-17. Citation: TCN-2022-NCLT-00717. The case involves a Company Petition filed by M/s Laxmi Corporation, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 17 Oct 2022
- **Citation:** TCN-2022-NCLT-00717
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ambica-polad-private-limited-cp-no-749-ibc-mb-2019-9e3ddc86

## Summary

### Background

The case involves a Company Petition filed by M/s Laxmi Corporation, the Operational Creditor, against M/s. Ambica Polad Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor seeks to initiate the Corporate Insolvency Resolution Process (CIRP) due to an operational debt of Rs. 29,36,052/- including interest on delayed payments. The Operational Creditor had supplied steel bars and wire rods to the Corporate Debtor between September 2010 and March 2014, with invoices payable within 30 days, after which an 18% per annum interest would be applied to the outstanding amount.

## Facts

M/s Laxmi Corporation (Operational Creditor) filed a Company Petition against M/s. Ambica Polad Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The operational debt claimed was Rs. 29,36,052/-, including interest on delayed payments. Between September 2010 and March 2014, the Operational Creditor supplied steel bars and wire rods to the Corporate Debtor, with invoices payable within 30 days, subject to 18% annual interest on outstanding amounts. In 2015, the Corporate Debtor issued seven cheques totaling a significant amount, which were dishonored due to insufficient funds. The Operational Creditor initiated proceedings under Section 138 of the Negotiable Instruments Act. A Memorandum of

…

## Issues and analysis

### Issue 1: Whether the Operational Creditor has successfully demonstrated the existence of debt and default by …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 requires the Operational Creditor to prove the

…

**Reasoning:** The court relied on the invoices, dishonored cheques, the Memorandum of Understanding

…

**Interpretation:** The court interpreted the evidence presented by the Operational Creditor as

…

**Application:** The court applied the ratio to the facts of the case, noting that the invoices,

…

## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** M/s Laxmi…
- **Respondents:** Ambica Polad…

## Timeline

- **2010-09-01 — Supply of…**: The Operational Creditor started supplying steel bars and wire rods to the Corporate…
- **2014-03-01 — End of Supply…**: The Operational Creditor stopped supplying steel bars and wire rods to the Corporate…

## 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-division-bench-court-i-chenn/ambica-polad-private-limited-cp-no-749-ibc-mb-2019-9e3ddc86