# In the matter of NAOLIN INFRASTRUCTURE PRIVATE LIMITED

> NCLT judgment dated 2024-06-04. Citation: TCN-2024-NCLT-01249. 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-01249
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/naolin-infrastructure-private-limited-93d3ef08

## 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 related to wind-operated electricity generators. The operational creditor had paid an advance of Rs. 2,34,08,250/- to the corporate debtor, but the corporate debtor failed to complete the work. A cheque issued by the corporate debtor was dishonored. The corporate debtor contended that the operational creditor did not hand over the physical

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## 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. The operational creditor claimed that the corporate debtor defaulted on a payment of Rs. 2,65,63,554/-. Mytrah Energy (India) Private Limited is the assignee of debt originally owed to Mytrah Vayu (Som) Private Limited. The corporate debtor was assigned civil activities related to wind-operated electricity generators at 23 locations in Jaisalmer District. Mytrah Vayu (Som) Private Limited placed two purchase orders with the operational creditor for Rs. 2,84,97,000/- and Rs. 27,14,000/-, respectively. 75% of the value was paid in advance, amounting to

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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 amount paid for goods or services amounts to an 'operational debt' under IB

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**Reasoning:** The NCLT considered the submissions of both counsels and relied on the Supreme Court's

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**Interpretation:** The interpretation of 'operational debt' is broad enough to include all forms

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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:** Mytrah Energy…
- **Respondents:** Naolin Infrastruct…

## Timeline

- **2021-12-03 — Original Project…**: Original project completion date…
- **2022-05-25 — Advance Paymen…**: Mytrah Vayu (Som) Private Limited paid Rs. 2,34,08,250/- to Naolin Infrastructure Private…

## 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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