# In the matter of API Engineers and Equipment Pvt. Ltd.

> NCLT judgment dated 2024-04-12. Citation: TCN-2024-NCLT-01739. The case involves an application filed by Gupta Power Infrastructure Ltd. (Operational…

- **Court:** NCLT
- **Order date:** 12 Apr 2024
- **Citation:** TCN-2024-NCLT-01739
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/api-engineers-and-equipment-pvt-ltd-d1a993f0

## Summary

### Background

The case involves an application filed by Gupta Power Infrastructure Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against API Engineers and Equipment Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed a default amount of Rs. 59,72,619.42, including principal and interest calculated as per the Micro, Small & Medium Enterprises Development Act, 2006. The Corporate Debtor raised the issue of limitation, arguing that the claim arose from invoices raised in March 2014, while the petition was filed in March 2018. An earlier petition (CP (IB) 203/2018) for the same debt was dismissed on 14.01.2019 due to limitation. The Operational Creditor argued that a

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## Facts

Gupta Power Infrastructure Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against API Engineers and Equipment Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed a default amount of Rs. 59,72,619.42, which included Rs. 14,05,924.37 as debt due and Rs. 45,66,695.05 as interest calculated as per Section 16 of the Micro, Small & Medium Enterprises Development Act, 2006. The Corporate Debtor issued a purchase order on 14.02.2014 for the supply of ACSR Panther Conductor, with a condition of 100% payment against PDC of 30 days from the date of offer for inspection. The Operational Creditor dispatched the materials on 16.03.2014. The Corporate

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## Issues and analysis

### Issue 1: Whether the present application under Section 9 of the IBC is maintainable given the dismissal of …

**Ratio:** The principle of res judicata prevents a party from relitigating an issue that has

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**Reasoning:** The court reasoned that the earlier petition (CP (IB) 203/2018) was dismissed on the

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**Interpretation:** The interpretation of the principle of res judicata in the context of

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**Application:** In this case, the court found that the present application was based on the

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## Parties

- **Judges:** V.G. B…; SH. PRABHAT…
- **Appellants:** Gupta Power…
- **Respondents:** API Engineers and…

## Timeline

- **2014-02-14 — Purchase…**: Corporate Debtor issued a purchase order to Operational Creditor for supply of ACSR…
- **2014-03-16 — Dispatch of M…**: Operational Creditor dispatched the…

## 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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