# In the matter of Lamco Industries Private Limited

> NCLT judgment dated 2024-04-15. Citation: TCN-2024-NCLT-01733. The operational creditor, Zenith Metalik Alloys Limited, filed a company petition under Section…

- **Court:** NCLT
- **Order date:** 15 Apr 2024
- **Citation:** TCN-2024-NCLT-01733
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lamco-industries-private-limited-78d90909

## Summary

### Background

The operational creditor, Zenith Metalik Alloys Limited, filed a company petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against the corporate debtor, Lamco Industries Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP) due to default in payment of an operational debt exceeding rupees one crore. The operational creditor claimed that the corporate debtor failed to pay for raw materials supplied, despite issuing purchase orders and accepting payment terms. The corporate debtor, however, contended that the prices quoted by the operational creditor were inflated and that there was a dispute regarding the rates of the material supplied. The corporate debtor also claimed to have already paid the principal amount of

…

## Facts

Zenith Metalik Alloys Limited (Operational Creditor) filed a petition against Lamco Industries Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for defaulting on a payment exceeding one crore rupees. The Corporate Debtor requested quotations for raw materials in March 2022, and the Operational Creditor issued a pro-forma invoice. The Corporate Debtor placed a purchase order on March 21, 2022. The Operational Creditor issued e-invoices for the supplies, and the Corporate Debtor issued post-dated cheques (PDCs) that were later dishonored with the remark 'Account Closed'. The Corporate Debtor informed the Operational Creditor in November 2022 that they would provide different cheques, but no new cheques were given. The

…

## Issues and analysis

### Issue 1: Whether the present application under Section 9 of IBC, can survive in so far as the same relates …

**Ratio:** The spirit of the legislation of the Code is for 'resolution of debt' and not for

…

**Reasoning:** The NCLT relied on precedents from the NCLAT and other NCLT benches, which held that the

…

**Interpretation:** The IBC is intended to resolve insolvency and facilitate the restructuring of

…

**Application:** In this case, the corporate debtor had paid the entire principal amount before

…

## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Zenith Metalik…
- **Respondents:** LAMCO Industries…

## Timeline

- **2022-03-01 — Corporate Debtor…**: The Corporate Debtor requested quotations for…
- **2022-03-10 — Pro-forma invoi…**: The Operational Creditor issued a…

## 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/lamco-industries-private-limited-78d90909