# In the matter of Clean Flow Cooling Tower Solutions Pvt. Ltd.

> NCLT judgment dated 2023-12-05. Citation: TCN-2023-NCLT-00456. MM Aqua Technologies Limited, the Operational Creditor, filed a Company Petition on 18.03.2020…

- **Court:** NCLT
- **Order date:** 5 Dec 2023
- **Citation:** TCN-2023-NCLT-00456
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/clean-flow-cooling-tower-solutions-pvt-ltd-43518357

## Summary

### Background

MM Aqua Technologies Limited, the Operational Creditor, filed a Company Petition on 18.03.2020 under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Clean Flow Cooling Tower Solutions Pvt. Ltd., the Corporate Debtor, for defaulting on an Operational Debt of Rs. 21,20,155/-. The debt comprised a principal amount of Rs. 17,14,593/- plus interest of Rs. 4,05,562/- until 15.10.2019. The Corporate Debtor disputed the total outstanding amount, claiming delays in delivery, defective materials, and raising debit notes against the Operational Creditor.

## Facts

MM Aqua Technologies Limited (Operational Creditor) filed a petition against Clean Flow Cooling Tower Solutions Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP for an outstanding operational debt of Rs. 21,20,155/-. The debt included a principal amount of Rs. 17,14,593/- and interest of Rs. 4,05,562/- until 15.10.2019. The Corporate Debtor engaged the Operational Creditor for supplying materials. Five purchase orders were raised between 28.11.2016 and 27.11.2018, and corresponding delivery invoices were raised. The Corporate Debtor alleged that 30% of the delivered materials were deformed, and the Operational Creditor was informed via email on 16.10.2018. The Operational Creditor replied on 30.10.2018,

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## Issues and analysis

### Issue 1: Whether multiple purchase orders can be clubbed together to file a single petition under Section 9 …

**Ratio:** A single petition covering several Purchase Orders of the same Operational Creditor is

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**Reasoning:** The Tribunal relied on the judgment of the Hon'ble NCLAT in International Road Dynamics

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**Interpretation:** The Insolvency and Bankruptcy Code does not prohibit the clubbing of multiple

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**Application:** The Tribunal concluded that the Operational Creditor was justified in clubbing

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** MM Aqua Technologi…
- **Respondents:** Clean Flow…

## Timeline

- **2016-11-28 — Purchase…**: Corporate Debtor raised a purchase…
- **2017-01-13 — Purchase…**: Corporate Debtor raised a purchase…

## 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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