# In the matter of Industrial Enviro and Engineering Services Private Limited Company Application No. CP (IB) 12-NCLT-AHM-2021

> NCLT judgment dated 2022-04-25. Citation: TCN-2022-NCLT-03082. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Apr 2022
- **Citation:** TCN-2022-NCLT-03082
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/industrial-enviro-and-engineering-services-private-limited-company-application-n-930e1ddd

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Tirupati Starch & Chemicals Ltd. (Operational Creditor) against Industrial Enviro & Engineering Services Private Limited (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The applicant claimed that the corporate debtor failed to rectify defects in a Waste Water Recycle System supplied and installed by them, despite payments made. The corporate debtor contended that there were disputes regarding the quality of the plant and services, and that the applicant had not fulfilled their obligations.

## Facts

Tirupati Starch & Chemicals Ltd. (Applicant/Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Industrial Enviro & Engineering Services Private Limited (Respondent/Corporate Debtor). The applicant placed an order on 26.05.2018 for the supply and installation of a Waste Water Recycle System with a capacity of 800 m3/day. The corporate debtor was required to complete the installation by 17.09.2018. The agreed price was Rs. 1,77,00,000/- inclusive of taxes. The applicant paid an advance of 10% on 29.05.2018 and made total payments of Rs. 1,68,20,000/-. The applicant claimed that the plant supplied by the corporate debtor was under-capacity and did not give the desired results. The applicant sent several

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## Issues and analysis

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

**Ratio:** The ratio decidendi is based on the Supreme Court's judgment in 'Mobilox Innovative

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**Reasoning:** The NCLT reasoned that the email communications and correspondences between the applicant

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**Interpretation:** The interpretation of Section 9 of the IBC, as clarified by the Supreme Court

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**Application:** In this case, the NCLT applied the ratio and reasoning to the specific facts.

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## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** Tirupati Starch…
- **Respondents:** Industrial Enviro…

## Timeline

- **2018-05-26 — Purchase…**: Applicant placed an order for supply and…
- **2018-05-29 — Advance P…**: Applicant paid 10%…

## 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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