# In the matter of N P S Power Solution Private Limited CP (IB) No.75-ALD-2020

> NCLT judgment dated 2022-04-27. Citation: TCN-2022-NCLT-03014. The case involves an application filed by Leoch Batteries Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 27 Apr 2022
- **Citation:** TCN-2022-NCLT-03014
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/n-p-s-power-solution-private-limited-cp-ib-no75-ald-2020-cf52166b

## Summary

### Background

The case involves an application filed by Leoch Batteries Private Limited, the Operational Creditor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against NPS Power Solutions Private Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for supplied batteries. The application was filed due to unpaid invoices for batteries supplied between March and May 2015, with a remaining outstanding amount of ₹1,29,42,045 after a last payment of ₹25,000 in October 2018. A demand notice was sent in May 2019, but no reply was received from the Corporate Debtor.

## Facts

Leoch Batteries Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against NPS Power Solutions Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for batteries supplied between March 27, 2015, and May 8, 2015. The last payment of ₹25,000 was made on October 15, 2018, leaving an outstanding amount of ₹1,29,42,045. A demand notice was sent on May 7, 2019, but the Corporate Debtor did not respond. The Corporate Debtor admitted to the outstanding amount in emails dated October 10, 2018, and September 20, 2018. The application was filed on January 16, 2020. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

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

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**Reasoning:** The court found that the Operational Creditor had provided sufficient evidence, including

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover outstanding

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Appellants:** Leoch Batteries…
- **Respondents:** NPS Power…

## Timeline

- **2015-03-27 — Start of Batte…**: Operational Creditor started supplying…
- **2015-05-08 — End of Batter…**: Operational Creditor stopped supplying…

## 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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