# In the matter of Empower Softrade & Techno Pvt. Ltd. IB-3058-(ND)-2019

> NCLT judgment dated 2022-03-15. Citation: TCN-2022-NCLT-03745. The case pertains to an application filed by M/s. Metenere Ltd., the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 15 Mar 2022
- **Citation:** TCN-2022-NCLT-03745
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/empower-softrade-techno-pvt-ltd-ib-3058-nd-2019-506bb003

## Summary

### Background

The case pertains to an application filed by M/s. Metenere Ltd., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Empower Softrade and Techno Pvt. Ltd., the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted in clearing a debt of Rs. 16,37,50,522, including 18% interest annually until 20.03.2019. The Corporate Debtor had approached the Operational Creditor for purchasing goods, specifically unwrought aluminum, which the Operational Creditor supplied. The Operational Creditor raised invoices and maintained a ledger account. Initially, the Corporate Debtor made regular payments but later stopped. Despite several

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## Facts

M/s. Metenere Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Empower Softrade and Techno Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed a default of Rs. 16,37,50,522, including 18% interest, until 20.03.2019. The Corporate Debtor had approached the Operational Creditor for purchasing unwrought aluminum, which the Operational Creditor supplied. The Operational Creditor raised invoices and maintained a ledger account. Initially, the Corporate Debtor made regular payments but later stopped after July 2017. The outstanding principal amount was more than Rs. 12 crores. The Corporate Debtor never raised any complaints against

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

**Ratio:** The legal principle is that if an operational debt exists and the Corporate Debtor has

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had defaulted in making

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**Interpretation:** The interpretation is that a default occurs when the Corporate Debtor fails to

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**Application:** In this case, the Corporate Debtor failed to make payments after July 2017,

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** M/s Metener…
- **Respondents:** M/s. Empower…

## Timeline

- **2019-03-20 — Demand Notice…**: The Operational Creditor issued a…
- **2019-03-22 — Demand Notice…**: The demand notice was duly…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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