# In the matter of BGR Energy Systems Limited {IA(IBC)-11-2023 in CP (IB)-58-9-AMR-2020]

> NCLT judgment dated 2023-09-01. Citation: TCN-2023-NCLT-01810. Premium Transmission Private Limited, the Operational Creditor (OC), filed a Company Petition…

- **Court:** NCLT
- **Order date:** 1 Sept 2023
- **Citation:** TCN-2023-NCLT-01810
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bgr-energy-systems-limited-iaibc-11-2023-in-cp-ib-58-9-amr-2020-0a2f5c12

## Summary

### Background

Premium Transmission Private Limited, the Operational Creditor (OC), filed a Company Petition against BGR Energy Systems Limited, the Corporate Debtor (CD), seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to default in discharging a debt. The OC and CD had business transactions for 15 years. Between 2017 and 2018, the CD approached the OC for the supply of gearboxes and related accessories for projects with Andhra Pradesh Power Generation Corporation (APGENCO) and Neyveli Uttar Pradesh Power Limited (NUPPL). The CD placed purchase orders, and the OC provided bank guarantees as requested and supplied the gearboxes and connected materials. Initially, the CD made payments against the invoices, but from March 2018, it defaulted. As of January 9,

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## Facts

Premium Transmission Private Limited (OC) filed a petition against BGR Energy Systems Limited (CD) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The OC and CD had a 15-year business relationship. Between 2017 and 2018, the CD ordered gearboxes and accessories from the OC for projects with APGENCO and NUPPL. The OC provided bank guarantees and supplied the goods. The CD initially made payments but defaulted from March 2018. As of January 9, 2020, Rs. 5,46,00,613.71/- was due. The OC's representatives met with the CD on October 25, 2019, to discuss the dues, and the CD promised payment by December 2019. The OC sent emails on October 30, 2019, requesting acknowledgment of the dues, but received no response. On November 5, 2019, the CD acknowledged the dues

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by the Operational Creditor is maintainable under Section 9 of …

**Ratio:** The petition is maintainable if the debt exceeds the threshold limit specified under

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**Reasoning:** The court considered that the admitted debt was more than Rs. 5 Crores, which is above

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

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**Application:** The court found that the debt exceeded the threshold limit and that the

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** Premium Transmissi…
- **Respondents:** BGR Energy…; BGR Energy…

## Timeline

- **2017-08-24 — CD approached OC for…**: The Corporate Debtor (CD) approached the Operational Creditor (OC) for the supply of…
- **2018-02-13 — CD approached OC for…**: The Corporate Debtor (CD) approached the Operational Creditor (OC) for the supply of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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