# In the matter of NAOLIN INFRASTRUCTURE PRIVATE LIMITED

> NCLT judgment dated 2024-06-04. Citation: TCN-2024-NCLT-01240. M/s Mytrah Energy (India) Private Limited, an assignee and operational creditor, filed a…

- **Court:** NCLT
- **Order date:** 4 Jun 2024
- **Citation:** TCN-2024-NCLT-01240
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/naolin-infrastructure-private-limited-51a5a975

## Summary

### Background

M/s Mytrah Energy (India) Private Limited, an assignee and operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Naolin Infrastructure Private Limited, the corporate debtor, for defaulting on a payment of Rs. 2,65,63,554/-. The operational creditor sought initiation of the Corporate Insolvency Resolution Process (CIRP). The corporate debtor was assigned civil activities to access WTG locations for wind-operated electricity generators. Mytrah Vayu (Som) Private Limited assigned its debt to Mytrah Energy (India) Private Limited. The operational creditor claimed that the corporate debtor failed to perform the works under purchase orders despite receiving advance amounts.

## Facts

M/s Mytrah Energy (India) Private Limited, the operational creditor, filed a petition against M/s Naolin Infrastructure Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP for a default of Rs. 2,65,63,554/-. The operational creditor is a sister concern of M/s Mytrah Vayu (Som) Private Limited, which assigned its debt to the operational creditor. The debt arose from purchase orders placed by Mytrah Vayu (Som) Private Limited with the corporate debtor for civil activities related to wind-operated electricity generators. The operational creditor paid 75% of the order value as advance, amounting to Rs. 2,34,08,250/-, on 2022-05-25. The project completion date was extended multiple times, and the

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## Issues and analysis

### Issue 1: Whether there is an ‘operational Debt' of a sum exceeding rupees one crore, due and payable by the …

**Ratio:** An advance payment made to a corporate debtor for the supply of goods or services

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**Reasoning:** The NCLT relied on the Supreme Court's interpretation of Section 5(21) of the IBC, which

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**Interpretation:** The interpretation of 'operational debt' under Section 5(21) of the IBC is

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**Application:** In this case, the advance payment made by Mytrah Vayu (Som) Private Limited to

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** M/s Mytrah Energy…
- **Respondents:** M/s. Naolin…

## Timeline

- **2021-12-03 — Project Completion Date…**: Initial project…
- **2022-05-25 — Advance P…**: Operational Creditor paid Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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