# In the matter of NEC Electromech (India) Private
Limited C.P. No. 888-IBC-MB-2022

> NCLT judgment dated 2023-03-02. Citation: TCN-2023-NCLT-04369. The case involves a petition filed by Praveen Mangilal Jain, the Managing Partner of M/s…

- **Court:** NCLT
- **Order date:** 2 Mar 2023
- **Citation:** TCN-2023-NCLT-04369
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nec-electromech-india-private-limited-cp-no-888-ibc-mb-2022-65aa2ebc

## Summary

### Background

The case involves a petition filed by Praveen Mangilal Jain, the Managing Partner of M/s Vardhaman Cables & Conductors (Operational Creditor), under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against NEC Electromech (India) Private Limited (Corporate Debtor). The Operational Creditor claimed a total debt of Rs. 1,97,27,552/-, including principal and interest, for the supply of LT Cables for the Corporate Debtor's Vashi IDPS T-230 Project. The Corporate Debtor made some payments but defaulted on the remaining amount.

## Facts

On 10.07.2017, NEC Electromech (India) Private Limited (Corporate Debtor) approached M/s Vardhaman Cables & Conductors (Operational Creditor) to place a purchase order for supplying LT Cable for the Vashi IDPS T-230 Project. On 17.07.2017, the Corporate Debtor issued a purchase order for the supply of LT Cables. Between August 2017 and August 2018, the Operational Creditor issued ten invoices totaling Rs. 1,62,15,690/-. The Corporate Debtor received the goods and made payments until October 2017, totaling Rs. 50,00,000/-. The Corporate Debtor then defaulted on payments. The original purchase order mandated payment within 60 days of receipt of goods. The Operational Creditor issued a Demand Notice under Section 8 of the IB Code on 04.12.2021, which was received by

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has successfully demonstrated the existence of a debt and default …

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

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

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**Interpretation:** The legal principle is that if an operational creditor can provide sufficient

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**Application:** In this case, the Operational Creditor provided the purchase order, invoices,

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## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Appellants:** Praveen Mangilal…
- **Respondents:** NEC Electromech…; Nikhil A…
- **Advocates:** Shravan Chandrashe…; Nikhil A…; +1 more

## Timeline

- **2017-07-10 — Corporate Debtor…**: NEC Electromech (India) Private Limited approached M/s Vardhaman Cables & Conductors for…
- **2017-07-17 — Purchase Orde…**: The Corporate Debtor issued the purchase…

## 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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