# In the matter of Pravara Renewable Energy Limited C.P.(IB)-2976(MB)-2018

> NCLT judgment dated 2023-01-06. Citation: TCN-2023-NCLT-05170. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 6 Jan 2023
- **Citation:** TCN-2023-NCLT-05170
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pravara-renewable-energy-limited-cpib-2976mb-2018-365a5b75

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Great Town Trading Private Limited (Operational Creditor) against Pravara Renewable Energy Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP) due to default in repaying a principal amount of ₹3,31,27,775 together with interest of ₹55,07,487, aggregating to ₹3,86,35,262 as on 26.07.2018. The Corporate Debtor placed an order for the supply of coal, and the Operational Creditor supplied the coal and raised four invoices. The Corporate Debtor defaulted on making payments despite receiving the goods without protest. The Corporate Debtor made part payments after the issuance of a demand notice but failed to pay the balance outstanding

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## Facts

Great Town Trading Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Pravara Renewable Energy Limited (Corporate Debtor) for initiating CIRP. The Corporate Debtor defaulted in repaying a principal amount of ₹3,31,27,775 together with interest of ₹55,07,487, aggregating to ₹3,86,35,262 as on 26.07.2018. The Corporate Debtor placed an order for the supply of coal, and the Operational Creditor supplied the coal and raised four invoices totaling Rs. 4,00,01,980. The Corporate Debtor defaulted on making payments despite receiving the goods without protest. The Operational Creditor issued a Demand Notice dated 21.05.2018, which was received by the Corporate Debtor. The Corporate Debtor replied to

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, allows for the initiation of CIRP if a

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**Reasoning:** The court found that the Corporate Debtor had admitted to making part payments towards

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**Interpretation:** The court interpreted the actions of the Corporate Debtor as an admission of

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**Application:** The court applied the ratio to the facts and found that the Corporate Debtor

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Great Town…
- **Respondents:** Pravara Renewable…

## Timeline

- **2017-03-24 — Purchase…**: Corporate Debtor placed an…
- **2017-04-25 — Invoice I…**: Operational Creditor issued…

## 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)

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