# In the matter of Genix Automation Private Limited

> NCLT judgment dated 2024-05-16. Citation: TCN-2024-NCLT-01319. This is a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 16 May 2024
- **Citation:** TCN-2024-NCLT-01319
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/genix-automation-private-limited-628f019b

## Summary

### Background

This is a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by M/s. Arm Welders Private Limited, the Operational Creditor, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Genix Automation Private Limited, the Corporate Debtor. The Operational Creditor claims that an amount of Rs. 1,76,35,847/- together with interest at the rate of 36% p.a which aggregates to Rs.7,45,18,927/- is due and payable by the Corporate Debtor. The date of default is as per default of individual invoices from December 2013 to July 2014.

## Facts

M/s. Arm Welders Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) against M/s. Genix Automation Private Limited (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor owed Rs. 1,76,35,847/- plus interest, totaling Rs. 7,45,18,927/-, based on unpaid invoices for goods supplied from December 2013 to July 2014. The Corporate Debtor acknowledged the debt in a statement of account dated 15.06.2017 and via email on 15.09.2022. A demand notice was sent to the Corporate Debtor but was returned undelivered. The Corporate Debtor failed to appear before the NCLT despite receiving notice and was subsequently set

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## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the IBC is …

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

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**Reasoning:** The NCLT considered the documents on record, including the invoices, purchase orders, and

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

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**Application:** The NCLT found that the Operational Creditor had provided sufficient evidence

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** M/s. ARM WELDERS…
- **Respondents:** M/s. GENIX…

## Timeline

- **2013-12-01 — Start of Good…**: Operational Creditor started…
- **2014-07-01 — End of Goods…**: Operational Creditor stopped…

## 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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