# In the matter of Mahalaxmi Fasteners Pvt. Ltd. CP (IB) No. 634 of 2021

> NCLT judgment dated 2023-05-12. Citation: TCN-2023-NCLT-03389. Precise Alloys Private Limited, the Operational Creditor, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 12 May 2023
- **Citation:** TCN-2023-NCLT-03389
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mahalaxmi-fasteners-pvt-ltd-cp-ib-no-634-of-2021-959689cc

## Summary

### Background

Precise Alloys Private Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Mahalaxmi Fasteners Private Limited, the Corporate Debtor, due to an outstanding operational debt of Rs. 1,75,68,734, which includes Rs. 1,52,44,029 towards principal and Rs. 23,24,705 as interest. The Operational Creditor supplied A S Wires to the Corporate Debtor between 29.10.2018 and 14.04.2021, and issued sales invoices. The Corporate Debtor acknowledged the receipts of invoices on 30.03.2021 and agreed on 13.12.2020 to pay the entire outstanding amount. However, the Corporate Debtor failed to make the payment, leading the Operational Creditor to

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## Facts

Precise Alloys Private Limited (Operational Creditor) filed a petition against Mahalaxmi Fasteners Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed an outstanding debt of Rs. 1,75,68,734, including principal and interest. The Operational Creditor supplied A S Wires to the Corporate Debtor between 29.10.2018 and 14.04.2021, issuing sales invoices. The Corporate Debtor acknowledged the invoices on 30.03.2021 and agreed on 13.12.2020 to pay the outstanding amount. However, the Corporate Debtor failed to make the payment, leading the Operational Creditor to issue a demand notice on 02.06.2021. The Corporate Debtor did not

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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 court reasoned that the Operational Creditor had submitted sufficient evidence,

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**Interpretation:** Section 9 is interpreted to mean that if an operational creditor can

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**Application:** In this case, the Operational Creditor provided invoices and ledger statements

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## Parties

- **Judges:** Kuldip Kumar…; Prabhat…
- **Appellants:** Precise Alloys…
- **Respondents:** Mahalaxmi…

## Timeline

- **2018-10-29 — Supply of A…**: Operational Creditor started supplying…
- **2021-04-14 — End of S…**: Operational Creditor stopped supplying…

## 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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