# In the matter of Inox Wind Limited

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02413. M/s Steel Mech Engineers filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02413
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/inox-wind-limited-a3ea9510

## Summary

### Background

M/s Steel Mech Engineers filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Inox Wind Ltd, claiming an operational debt of Rs. 1,88,53,723, which included a principal amount of Rs. 97,34,507 and delayed payment interest. The respondent, Inox Wind Ltd, argued that the principal amount had already been paid and that the claim was now only for interest, which was not maintainable under IBC. They also claimed a pre-existing dispute regarding the quality of the supplied materials.

## Facts

M/s Steel Mech Engineers, the applicant, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s Inox Wind Ltd, the respondent. The applicant claimed an operational debt of Rs. 1,88,53,723, including a principal amount of Rs. 97,34,507 and delayed payment interest. The respondent argued that the principal amount had already been paid and that the claim was now only for interest, which was not maintainable under IBC. The respondent also claimed a pre-existing dispute regarding the quality of the supplied materials, referring to an email dated 06.09.2018. The applicant contended that they were an MSME unit and entitled to interest under statutory safeguards. The principal debt was paid in full by the respondent before

…

## Issues and analysis

### Issue 1: Whether the CIRP can be initiated / triggered solely on the basis of the un-paid amount of interest …

**Ratio:** The Insolvency and Bankruptcy Code is primarily for resolution of debt and not merely for

…

**Reasoning:** The court relied on the judgment of the Hon'ble NCLAT in S. S. Polymers v. Kanodia

…

**Interpretation:** The IBC is interpreted to prioritize the resolution of insolvency and not to be

…

**Application:** In this case, since the principal amount of Rs. 97,34,507 had already been paid

…

## Parties

- **Judges:** Sh. Harnam Singh…; SH. L. N.…
- **Appellants:** M/s. Steel Mech…
- **Respondents:** M/s Inox Wind…

## Timeline

- **2009-04-09 — Company Incor…**: M/s Inox Wind Ltd…
- **2017-01-21 — Date of D…**: Applicant claimed the date…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/inox-wind-limited-a3ea9510