# In the matter of H.R. Power Projects Private Limited

> NCLT judgment dated 2024-09-09. Citation: TCN-2024-NCLT-00638. The case involves an application (IA No. 2048/2023) preferred by the Corporate Debtor, H. R.…

- **Court:** NCLT
- **Order date:** 9 Sept 2024
- **Citation:** TCN-2024-NCLT-00638
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hr-power-projects-private-limited-1366fae6

## Summary

### Background

The case involves an application (IA No. 2048/2023) preferred by the Corporate Debtor, H. R. Power Projects Private Limited, against the Operational Creditor, Trade Perfections, under Section 60(5) of the I&B Code, seeking to place on record a Sur-rejoinder to the Rejoinder dated 05.01.2023. This was necessitated by subsequent documents, including a Settlement Agreement dated 12.04.2021 and a Board Resolution dated 05.04.2021, placed on record by the Petitioner. The Corporate Debtor alleges that the Settlement Agreement is fabricated and that the Operational Creditor forged signatures and misused security cheques. The Operational Creditor, Trade Perfections, initiated a Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy

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## Facts

Trade Perfections, the Operational Creditor, supplied Lamination Core to H. R. Power Projects Private Limited, the Corporate Debtor, for Rs. 2,45,42,970/- from 04.11.2016 to 31.03.2017 and further supplies for Rs. 1,90,32,194/- from 01.04.2017 to 31.03.2018. The Corporate Debtor paid Rs. 37,99,150/- during 01.04.2017 to 31.03.2018, leaving an outstanding of Rs. 3,97,88,246/-. The Operational Creditor claimed a default of Rs. 3,87,88,246/- with the default date as 28.02.2017. A demand notice was issued on 18.04.2019, followed by a payment of Rs. 10 Lakh on 29.05.2019. A second demand notice was issued on 05.02.2020. The Corporate Debtor alleged that the Settlement Agreement dated 12.04.2021 was fabricated and that the supplies were of substandard quality, for which a

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## Issues and analysis

### Issue 1: Whether the allegations of forgery and fraud regarding the Settlement Agreement can be adjudicated …

**Ratio:** Allegations of forgery and fraud are not decided in proceedings under Section 9 of the

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**Reasoning:** The Adjudicating Authority is not empowered to adjudicate issues relating to serious

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**Interpretation:** The I&B Code provides a summary procedure for insolvency resolution, and it

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**Application:** The Corporate Debtor's allegations of forgery and fabrication of the Settlement

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## Parties

- **Judges:** Harnam Singh…; D. Ar…
- **Appellants:** Trade Perfe…
- **Respondents:** H. R. Power…; M/s. H. R. Power…

## Timeline

- **2016-11-04 — Supply of Lamination…**: Trade Perfections supplied Lamination Core to H. R. Power Projects Private Limited from…
- **2017-04-01 — Further Supply of…**: Trade Perfections supplied Lamination Core to H. R. Power Projects Private Limited from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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