# In the matter of Khati Solutions Private Limited

> NCLT judgment dated 2023-11-09. Citation: TCN-2023-NCLT-00814. This case involves an application filed by Evlion Technologies Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 9 Nov 2023
- **Citation:** TCN-2023-NCLT-00814
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/khati-solutions-private-limited-6d4f4415

## Summary

### Background

This case involves an application filed by Evlion Technologies Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Khati Solutions Private Limited, the Corporate Debtor, due to a default in payment of Rs. 1,00,36,380/-. The Operational Creditor is a manufacturer of lithium batteries, and the Corporate Debtor approached them for the supply of goods, including lithium batteries. A vendor agreement was signed on 18.11.2021, outlining payment terms of 20% in advance, 77% before dispatch, and 3% for warranty costs. The Corporate Debtor issued a purchase order for 500 units of lithium battery packs. The Operational Creditor supplied 250 units,

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## Facts

Evlion Technologies Private Limited (Operational Creditor) is a manufacturer of lithium batteries. Khati Solutions Private Limited (Corporate Debtor) approached Evlion for the supply of lithium batteries. A vendor agreement was signed on 2021-11-18, specifying payment terms: 20% advance, 77% before dispatch, and 3% for warranty. The Corporate Debtor issued purchase order no. 946 on 2021-11-25 for 500 units of lithium battery packs. The Operational Creditor supplied 250 units, and the Corporate Debtor paid for them. The Operational Creditor issued a proforma invoice on 2022-09-10 for the remaining 250 units, amounting to Rs. 1,00,54,000/-. Tax invoices were also issued on 2022-05-31 (Rs. 31,860) and 2022-06-08 (Rs. 16,520). The Corporate Debtor failed to make payment

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of an operational debt and a default …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The Adjudicating Authority considered the vendor agreement, invoices, and the demand

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**Interpretation:** The existence of a vendor agreement and unpaid invoices are considered valid

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**Application:** In this case, the vendor agreement, unpaid invoices, and the absence of payment

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## Parties

- **Judges:** SHRI. BACHU…; SHRI. RAHUL…
- **Appellants:** M/s. Evlion…
- **Respondents:** M/s. Khati…

## Timeline

- **2021-11-18 — Vendor Agreeme…**: A vendor agreement was signed between Evlion Technologies and Khati Solutions for the…
- **2021-11-25 — Purchase Orde…**: Khati Solutions issued purchase order no. 946…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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