# In the matter of Avinash EM Projects Pvt. Ltd.

> NCLT judgment dated 2023-07-13. Citation: TCN-2023-NCLT-02542. The Adjudicating Authority initially dismissed the company petition because there was no…

- **Court:** NCLT
- **Order date:** 13 Jul 2023
- **Citation:** TCN-2023-NCLT-02542
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avinash-em-projects-pvt-ltd-3227e621

## Summary

### Background

The Adjudicating Authority initially dismissed the company petition because there was no specific provision for interest in the invoice or agreement. The petitioner then appealed to the NCLAT, introducing additional documents (letters dated February 17, 2016, and November 28, 2017) which stipulated a 24% per annum interest rate on delayed payments. The NCLAT, considering these new documents, overturned the previous decision, leading to the current admission of the petition.

## Facts

The Adjudicating Authority initially dismissed the Company Petition (IB)-598/ND/2022 on November 14, 2022. The dismissal was based on the finding that, unlike the case of "Prashant Agarwal Vs. Vikas Parasrampuria and Anr.", the present petition lacked a specific invoice or agreement on record that provided for interest on the amount due to the Operational Creditor. This absence of a contractual provision for interest was a key factor in the initial rejection of the application under Section 9 of the IBC, 2016. The Petitioner subsequently appealed this judgment to the Appellate Tribunal, NCLAT, in Company Appeal (AT) (Ins.) No. 83/2023. During the appeal, the Petitioner submitted additional documents: letters dated February 17, 2016, and November 28,

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC, 2016, should be admitted despite the initial …

**Ratio:** An application under Section 9 of the IBC, 2016, can be admitted if subsequent evidence

…

**Reasoning:** The NCLAT, upon review of additional documents (letters dated February 17, 2016, and

…

**Interpretation:** The court interpreted the requirement for a 'debt' under Section 9 to include

…

**Application:** The NCLAT's order, based on the newly submitted letters specifying 24%

…

## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** Bhotika Trade &…
- **Respondents:** Avinash EM…
- **Advocates:** For the Applicant:…; For the Respondent…

## Timeline

- **November 14, 2022 — Initial Petition…**: The Adjudicating Authority dismissed the Company Petition (IB)-598/ND/2022, citing the…
- **February 17, 2016 — Letter regarding due…**: A letter was issued stating that the vendor is entitled to 24% interest per annum on due…

## 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/avinash-em-projects-pvt-ltd-3227e621