# In the matter of Muhlembau Equipments Pvt. Ltd. CP (IB) No. 119-BB-2020

> NCLT judgment dated 2022-03-03. Citation: TCN-2022-NCLT-03909. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016.…

- **Court:** NCLT
- **Order date:** 3 Mar 2022
- **Citation:** TCN-2022-NCLT-03909
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/muhlembau-equipments-pvt-ltd-cp-ib-no-119-bb-2020-b6744515

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority initially disposed of the CP (IB) No. 119 of 2020, directing the Respondent to settle the Petitioner's claim within three months. Aggrieved by this order, the Petitioner filed a Company Appeal before the NCLAT, Chennai. The NCLAT allowed the appeal, setting aside the Adjudicating Authority's order and directing it to admit the application and initiate the Corporate Insolvency Resolution Process (CIRP).

## Facts

M/s. Dynamic Engineers Ltd (Petitioner) filed a CP (IB) No.119/BB/2020 against M/s. Muhlenbau Equipments Pvt Ltd (Respondent) under Section 9 of the Insolvency & Bankruptcy Code, 2016. The Adjudicating Authority initially disposed of the case, directing the Respondent to settle the claim. The Petitioner appealed to the NCLAT, which allowed the appeal and directed the Adjudicating Authority to admit the application and initiate the Corporate Insolvency Resolution Process (CIRP). The amount due was more than Rupees One Lakh. The Adjudicating Authority then admitted the CP, declared a moratorium under Section 14, and appointed Mr. Konduru Prasanth Raju as the Interim Resolution Professional (IRP). The IRP is tasked with collating claims, determining the financial

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should admit the application under Section 9 of the Insolvency …

**Ratio:** The NCLAT's order mandates the Adjudicating Authority to admit the application if it is

…

**Reasoning:** The NCLAT, in its appellate jurisdiction, reviewed the initial order of the Adjudicating

…

**Interpretation:** Section 9 of the IBC allows for the initiation of CIRP upon the fulfillment of

…

**Application:** Given the NCLAT's order and the fact that the C.P. is complete and the amount

…

## Parties

- **Judges:** SH. AJAY KUMAR…; SH. MANOJ KUMAR…
- **Appellants:** M/s. Dynamic…
- **Respondents:** M/s. Muhlenbau…

## Timeline

- **2021-02-24 — Initial Order by…**: The Adjudicating Authority disposed of the CP (IB) No. 119 of 2020, directing the…
- **2021-09-07 — Order by NCLAT…**: The NCLAT allowed the appeal, setting aside the Adjudicating Authority's order and…

## 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/muhlembau-equipments-pvt-ltd-cp-ib-no-119-bb-2020-b6744515