# In the matter of Doosan Power Systems India Private Limited (IB)-474(ND)2022

> NCLT judgment dated 2023-03-03. Citation: TCN-2023-NCLT-04358. Prism Johnson Limited, the Operational Creditor/Petitioner, filed a Company Petition…

- **Court:** NCLT
- **Order date:** 3 Mar 2023
- **Citation:** TCN-2023-NCLT-04358
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/doosan-power-systems-india-private-limited-ib-474nd2022-0e0c15e2

## Summary

### Background

Prism Johnson Limited, the Operational Creditor/Petitioner, filed a Company Petition (IB)-474/ND/2022 against Doosan Power Systems India Private Limited, the Corporate Debtor/Respondent, for procuring ready-mix concrete for the 'Obra C Extension Thermal Power Station' project in Uttar Pradesh. A sub-contract was entered on 08.07.2017, and the CD placed an order on 25.07.2017. The OC claims to have fulfilled its obligations, issuing invoices from November 2017 to August 2021. The OC alleges the CD failed to honor invoices, leading to a demand for outstanding amounts. The CD acknowledged liability via balance confirmation letters but later disputed the debt.

## Facts

Prism Johnson Limited (Operational Creditor) supplied ready-mix concrete to Doosan Power Systems India Private Limited (Corporate Debtor) for the 'Obra C Extension Thermal Power Station' project. A sub-contract was established on 08.07.2017, followed by a purchase order on 25.07.2017. The OC claims to have fulfilled its obligations, issuing invoices between November 2017 and August 2021. The OC alleges that the CD neglected to honor the invoices, leading to the issuance of letters demanding payment between 12.07.2021 and 15.09.2021. The CD acknowledged its liability through balance confirmation letters dated 29.04.2020, 14.06.2021, and 02.09.2021. The OC sent a demand notice on 30.12.2021 under Section 8 of the IBC, 2016. The CD replied on 13.01.2022, disputing the

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## Issues and analysis

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

**Ratio:** Section 9 of the IBC, 2016, allows an operational creditor to initiate CIRP against a

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**Reasoning:** The Adjudicating Authority considered the Corporate Debtor's arguments regarding the

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**Interpretation:** The interpretation of Section 9 requires the Adjudicating Authority to

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**Application:** The Authority rejected the Corporate Debtor's plea that no contract existed

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** Prism Johnson…
- **Respondents:** Doosan Power…

## Timeline

- **2017-07-08 — Sub-Contract A…**: Operational Creditor and Corporate Debtor entered into a sub-contract for supply of…
- **2017-07-25 — Purchase…**: Corporate Debtor placed an order for ready-mix…

## 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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