# In the matter of Avasarala Technologies Limited

> NCLT judgment dated 2023-07-04. Citation: TCN-2023-NCLT-02693. The case involves a petition filed by Thyssenkrupp Automation Engineering GmbH (Operational…

- **Court:** NCLT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLT-02693
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avasarala-technologies-limited-12db8cae

## Summary

### Background

The case involves a petition filed by Thyssenkrupp Automation Engineering GmbH (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Avasarala Technologies Limited (Corporate Debtor) due to a default on payments. The Corporate Debtor allegedly failed to pay an outstanding amount of EUR 385498.35 (Rs. 3,41,16,603). The Operational Creditor, a company incorporated under the laws of Germany, had a business relationship with the Corporate Debtor, supplying engineering services and hardware items. Despite regular delivery of goods and issuance of invoices, payments were not made. A previous petition (CP (IB) No. 61/BB/2017) was disposed of with liberty to file a fresh

…

## Facts

Thyssenkrupp Automation Engineering GmbH (Operational Creditor), a German company, supplied engineering services and hardware items to Avasarala Technologies Limited (Corporate Debtor), an Indian company specializing in high technology engineering. The Corporate Debtor defaulted on payments amounting to EUR 385498.35 (Rs. 3,41,16,603.98). Despite regular delivery of goods and issuance of invoices, payments were not forthcoming. The Operational Creditor issued a demand notice dated 27.02.2017 under Section 8 of the IBC. A previous petition, CP (IB) No. 61/BB/2017, was filed and later disposed of with liberty to file a fresh petition. The Corporate Debtor admitted the debt and proposed a settlement, including a 20% rebate and extended payment timeline, but failed to

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the IBC, 2016, for …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

…

**Reasoning:** The adjudicating authority considered the evidence presented, including the outstanding

…

**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

…

**Application:** The court applied Section 9 to the facts of the case, finding that the

…

## Parties

- **Judges:** BIDISHA BA…; Manoj Kumar…
- **Appellants:** Thyssenkrupp…
- **Respondents:** Avasarala…

## Timeline

- **2011-01-01 — Business Rela…**: Respondent approached Petitioner for purchase…
- **2017-02-27 — Demand N…**: Petitioner issued demand notice…

## 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/avasarala-technologies-limited-12db8cae