# In the matter of M.S. Khurana Engineering Limited

> NCLT judgment dated 2024-04-01. Citation: TCN-2024-NCLT-01909. The case involves an application filed by Power & Instrumentation (Gujarat) Ltd. (Operational…

- **Court:** NCLT
- **Order date:** 1 Apr 2024
- **Citation:** TCN-2024-NCLT-01909
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ms-khurana-engineering-limited-02462949

## Summary

### Background

The case involves an application filed by Power & Instrumentation (Gujarat) Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Khurana Engineering Limited (Corporate Debtor) for defaulting on payments. The outstanding dues include Rs. 2,11,81,568 towards the principal amount of unpaid invoices and Rs. 3,58,49,658 towards interest. The application was initially filed before the Gujarat High Court as Company Petition No. 479 of 2016 under the Companies Act, 2013, and was later transferred to the National Company Law Tribunal (NCLT).

## Facts

Power & Instrumentation (Gujarat) Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Khurana Engineering Limited (Corporate Debtor). The application was initially filed as Company Petition No. 479 of 2016 before the Gujarat High Court under Section 271(2)(1) of the Companies Act, 2013, and was transferred to NCLT on 04.05.2022. The Operational Creditor claimed outstanding dues of Rs. 2,11,81,568 towards principal and Rs. 3,58,49,658 towards interest, totaling Rs. 5,70,31,226. The debt arose from a sub-contract for electrical work awarded to the Operational Creditor by the Corporate Debtor on 14.06.2010, valued at Rs. 12.28 Crs. 83

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is complete and maintainable for initiating CIRP …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP if a debt is due and

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**Reasoning:** The NCLT found that the application was complete in terms of Section 9 of the Code, as

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**Interpretation:** Section 9 provides the requirements for an operational creditor to initiate

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**Application:** The NCLT applied Section 9 to the facts, finding that the Operational Creditor

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Power & Instrument…
- **Respondents:** M.S. Khurana…
- **Advocates:** Rasesh P…; Ishan…

## Timeline

- **2010-06-14 — Sub-contract…**: The Corporate Debtor awarded a sub-contract for electrical works to the Operational…
- **2010-10-01 — Invoice Perio…**: The Operational Creditor began raising…

## 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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