# In the matter of Pravin Electricals Pvt. Ltd.

> NCLT judgment dated 2023-10-17. Citation: TCN-2023-NCLT-01183. Akshaya Engineering Works Pvt. Ltd. filed a Company Petition on 16.03.2022 under Section 9 of…

- **Court:** NCLT
- **Order date:** 17 Oct 2023
- **Citation:** TCN-2023-NCLT-01183
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pravin-electricals-pvt-ltd-34855a03

## Summary

### Background

Akshaya Engineering Works Pvt. Ltd. filed a Company Petition on 16.03.2022 under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Pravin Electricals Pvt. Ltd. for an operational debt of Rs. 1,54,41,822.89/-, which includes outstanding invoice payments of Rs. 1,14,95,055.47 and interest of Rs. 39,46,767.43 at an average rate of 16.74% until 14.12.2021. Akshaya Engineering Works is the Operational Creditor, a registered Micro, Small, and Medium Enterprise, while Pravin Electricals is the Corporate Debtor. The Operational Creditor provided services for the installation of electrical equipment at various premises of Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) under

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## Facts

Akshaya Engineering Works Pvt. Ltd. (Operational Creditor) filed a petition against Pravin Electricals Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP for an operational debt of Rs. 1,54,41,822.89/-. The debt comprises Rs. 1,14,95,055.47 in outstanding invoice payments and Rs. 39,46,767.43 in interest. The Operational Creditor is a registered MSME. The Corporate Debtor was the main contractor, and the Operational Creditor was a subcontractor for electrical equipment installation at MSEDCL premises. The Operational Creditor provided services under Letters of Award and Contract Agreements. The first invoice was dated 31.10.2018, and the last was dated 18.10.2019. The Operational Creditor claims the first

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## Issues and analysis

### Issue 1: Whether the Respondent is a Corporate Debtor and the Petitioner has successfully demonstrated the …

**Ratio:** The principle that a 'debt' and 'default' must be established for the admission of a

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**Reasoning:** The NCLT found that the Corporate Debtor had admitted liability through an email dated

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**Interpretation:** The interpretation of 'debt' and 'default' under the IBC requires a clear

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**Application:** The NCLT applied the principle by examining the invoices, the Corporate

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## Parties

- **Judges:** Reeta K…; SANJIV…
- **Appellants:** Akshaya Engineerin…
- **Respondents:** Pravin Electricals…

## Timeline

- **2018-10-31 — First Invoi…**: The first invoice was raised…
- **2018-11-22 — First De…**: The first default occurred due…

## 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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