# In the matter of Cema Electric Lighting Products Private Limited

> NCLT judgment dated 2025-02-14. Citation: TCN-2025-NCLT-00485. The case involves an application filed by Overdrive Electronics Pvt. Ltd. (Operational…

- **Court:** NCLT
- **Order date:** 14 Feb 2025
- **Citation:** TCN-2025-NCLT-00485
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cema-electric-lighting-products-private-limited-6a0d395a

## Summary

### Background

The case involves an application filed by Overdrive Electronics Pvt. Ltd. (Operational Creditor) against CEMA Electric Lighting Products India Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The application was initially admitted, leading to CIRP initiation and appointment of an Interim Resolution Professional (IRP). However, the NCLAT quashed the CIRP order and remanded the matter back to the Tribunal for fresh consideration. The Supreme Court directed the Tribunal to deal with the case expeditiously without being influenced by prior orders. The Corporate Debtor claimed defective products and sought reconciliation of accounts, while the Operational

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## Facts

Overdrive Electronics Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against CEMA Electric Lighting Products India Pvt. Ltd. (Corporate Debtor) for an unpaid operational debt. The principal amount claimed was Rs. 1,80,02,528, with interest up to 07.09.2023 at 18% per annum, totaling Rs. 2,20,03,735. The date of default was stated as 18.04.2022. The Operational Creditor supplied LED lighting products to the Corporate Debtor. The Corporate Debtor claimed defective products under warranty and sought reconciliation of accounts. The Operational Creditor argued that the Corporate Debtor never raised a dispute before the demand notice and availed GST input on the invoices. The NCLAT initially quashed

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the IBC is …

**Ratio:** The adjudicating authority, when examining an application under Section 9 of the Act,

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**Reasoning:** The Tribunal found that the Operational Creditor had shown there was a debt exceeding the

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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 Tribunal applied the ratio to the facts and found that the Operational

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Overdrive…
- **Respondents:** Cema Electric…; Ceme Electric…
- **Advocates:** S. Sathyana…; Anuj Kumar…; +1 more

## Timeline

- **2014-03-31 — Business Comm…**: Business commenced between the…
- **2017-08-24 — Closure Application…**: Corporate Debtor's application under the Industrial Dispute Act 1947 for closure of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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