# In the matter of Ebullient Cables Private Limited

> NCLT judgment dated 2024-02-14. Citation: TCN-2024-NCLT-02605. The case originates from an application filed on 2019-12-19 by ETA Engineering Private Limited,…

- **Court:** NCLT
- **Order date:** 14 Feb 2024
- **Citation:** TCN-2024-NCLT-02605
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ebullient-cables-private-limited-79f8d460

## Summary

### Background

The case originates from an application filed on 2019-12-19 by ETA Engineering Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Ebullient Cables Private Limited, the Corporate Debtor, due to a default in payment of Rs. 22,26,588/-. The default date was 2017-06-21. The Operational Creditor had raised a purchase order on the Corporate Debtor for supply and laying of cables for a project undertaken by the Operational Creditor. Advance payments were made, but the Corporate Debtor neither provided the material nor returned the advance amount. A demand notice was issued, but the Corporate Debtor failed to respond. The Operational Creditor relied

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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 application was filed on 2019-12-19, claiming a default of Rs. 22,26,588/- with the date of default being 2017-06-21. The Operational Creditor had issued a purchase order to the Corporate Debtor for supply and laying of cables for a project undertaken by the Operational Creditor. The Operational Creditor made advance payments totaling Rs. 21,76,588/- to the Corporate Debtor. The Corporate Debtor received an inspection call but failed to provide the requisite material. The Corporate Debtor neither provided the

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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 found that the Operational Creditor had provided sufficient evidence of a

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

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**Application:** The Tribunal applied Section 9 to the facts of the case and found that the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/S. ETA ENGINEERI…
- **Respondents:** EBULLIENT CABLES…; M/S. EBULLIENT…
- **Advocates:** Zia Ul…

## 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 for a total sum of Rs. 21,76,588/- to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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