# In the matter of Avasarala Technologies Limited

> NCLT judgment dated 2023-07-04. Citation: TCN-2023-NCLT-02711. The case involves a petition filed by Thyssenkrupp Automation Engineering GmbH (Operational…

- **Court:** NCLT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLT-02711
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avasarala-technologies-limited-586edf89

## 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 defaulted on a total outstanding amount of EUR 385498.35 (Rs. 3,41,16,603). The Operational Creditor is a company incorporated under the laws of Germany, while the Corporate Debtor is an Indian company established in 1985. The business relationship between the parties began in 2011-12 when the Corporate Debtor approached the Operational Creditor for engineering services and hardware items. The Corporate Debtor failed to make

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## Facts

Thyssenkrupp Automation Engineering GmbH (Operational Creditor), a company incorporated under the laws of Germany, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Avasarala Technologies Limited (Corporate Debtor), an Indian company established in 1985. The business relationship between the parties began in 2011-12 when the Corporate Debtor approached the Operational Creditor for engineering services and hardware items. The Corporate Debtor defaulted on payments totaling EUR 385498.35 (Rs. 3,41,16,603). The Operational Creditor sent statements of pending invoices, which were confirmed by the Corporate Debtor, but payments were not made. A demand notice was issued on

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## Issues and analysis

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

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

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**Reasoning:** The adjudicating authority considered that there was no reason to deny the petition filed

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** The tribunal applied Section 9 of the IBC to the facts of the case, finding

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## Parties

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

## Timeline

- **2011-01-01 — Business Relationship…**: The respondent approached the petitioner for purchase of engineering services and…
- **2017-02-27 — Demand Notice…**: The Petitioner issued a demand notice under Section 8 of the Insolvency and Bankruptcy…

## 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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