# In the matter of Ebullient Cables Private Limited

> NCLT judgment dated 2024-02-14. Citation: TCN-2024-NCLT-02596. The case involves an application filed by ETA Engineering Private Limited (Operational…

- **Court:** NCLT
- **Order date:** 14 Feb 2024
- **Citation:** TCN-2024-NCLT-02596
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ebullient-cables-private-limited-1c7253a2

## Summary

### Background

The case involves an application filed by ETA Engineering Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ebullient Cables Private Limited (Corporate Debtor) due to a default in payment of Rs. 22,26,588/-. The default was related to a purchase order for supply and laying of cables for a project undertaken by the Operational Creditor for Paschimanchal Vidyut Vitran Nigam Limited (PVVNL). The Operational Creditor made advance payments to the Corporate Debtor, but the Corporate Debtor failed to provide the materials or return the advance amount. The Operational Creditor issued a demand notice, but the Corporate Debtor neither made the payment nor filed

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## Facts

ETA Engineering Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ebullient Cables Private Limited (Corporate Debtor). The Operational Creditor raised a Purchase Order (P.O.) bearing No. N700/161 dated 2017-03-30 upon the Corporate Debtor for supply and laying of cables in a project undertaken by the Operational Creditor for Paschimanchal Vidyut Vitran Nigam Limited (PVVNL). The Operational Creditor made advance payments totaling Rs. 21,76,588/- to the Corporate Debtor via cheque nos. 517235 and 517233, both dated 2017-04-29, which were encashed by the Corporate Debtor. The Corporate Debtor received an inspection call letter dated

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The Tribunal noted that the Corporate Debtor failed to appear or file a reply, and the

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP

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**Application:** The Tribunal found that the Operational Creditor had established an operational

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/s. Eta Engineeri…
- **Respondents:** EBULLIENT CABLES…; M/S. EBULLIENT…

## Timeline

- **2017-03-30 — Purchase…**: Operational Creditor raised a Purchase Order (P.O.) bearing No. N700/161 upon the…
- **2017-04-29 — Advance Pa…**: Operational Creditor made advance payments totaling Rs. 21,76,588/- to the Corporate…

## 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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