# In the matter of Dhanlaxmi Electricals Private Limited

> NCLT judgment dated 2023-12-06. Citation: TCN-2023-NCLT-00416. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Dec 2023
- **Citation:** TCN-2023-NCLT-00416
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dhanlaxmi-electricals-private-limited-a7665a7c

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) by Saraswati Wire & Cable Industries, the Operational Creditor, against Dhanlaxmi Electricals Private Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The company petition was filed claiming a total debt of Rs. 2,04,20,800/-, with the principal amount defaulted being Rs. 1,79,93,691/- and interest of Rs. 85,27,110/- till 24.08.2021. The date of default was 21.11.2019. The Operational Creditor issued a demand notice on 25.08.2021, and the Corporate Debtor replied on 20.11.2021, raising disputes regarding certain invoices.

## Facts

Saraswati Wire & Cable Industries filed a petition against Dhanlaxmi Electricals Private Limited under Section 9 of the I&B Code, 2016, seeking initiation of CIRP. The total debt claimed was Rs. 2,04,20,800/-, comprising a principal amount of Rs. 1,79,93,691/- and interest of Rs. 85,27,110/-. The date of default was 21.11.2019. A demand notice was issued by the Operational Creditor on 25.08.2021. The Corporate Debtor replied on 20.11.2021, disputing two invoices. The Operational Creditor presented an email from the Corporate Debtor acknowledging the debt. The Corporate Debtor had made a payment of Rs. 61,00,000/- after the demand notice. The NCLT observed that the Corporate Debtor failed to file a reply despite being granted time. The NCLT found no pre-existing

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the I&B Code, 2016, …

**Ratio:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP against a

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**Reasoning:** The NCLT considered the documents submitted by the Operational Creditor and found that

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The NCLT applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Saraswati Wire &…
- **Respondents:** Dhanlaxmi…

## Timeline

- **2019-11-21 — Date of D…**: The Corporate Debtor defaulted…
- **2021-08-25 — Demand Notice…**: The Operational Creditor issued a…

## 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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