# In the matter of Promac Engineering Industries Ltd.

> NCLT judgment dated 2024-01-31. Citation: TCN-2024-NCLT-02829. The case pertains to a Company Petition filed by Vasavi Power Services Private Limited…

- **Court:** NCLT
- **Order date:** 31 Jan 2024
- **Citation:** TCN-2024-NCLT-02829
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/promac-engineering-industries-ltd-1c69bdd9

## Summary

### Background

The case pertains to a Company Petition filed by Vasavi Power Services Private Limited (Operational Creditor/Petitioner) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Promac Engineering Industries Ltd (Corporate Debtor/Respondent). The petition was filed on the grounds that the Corporate Debtor defaulted on a total outstanding amount of Rs. 2,43,48,930. The date of default was mentioned as 07/09/2019.

## Facts

Vasavi Power Services Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Promac Engineering Industries Ltd (Corporate Debtor) for defaulting on a total outstanding amount of Rs. 2,43,48,930. The Corporate Debtor awarded a work order to the Operational Creditor on 03/09/2016 for electrical, instrumentation, and automation work in Senegal, Africa, with a total estimated value of Rs. 5,44,31,372. The work order was amended on 12/10/2017, and another work order was placed on 29/12/2017. The work was completed in 29 months instead of 12 months due to delays by the Corporate Debtor. Invoices were raised from 2016 to 2019 and recognized by the Corporate Debtor, who made part-payments from March 2017 to

…

## Issues and analysis

### Issue 1: Whether the present Petition is filed within the prescribed limitation period of 3 years from the …

**Ratio:** The ratio is based on the interpretation of Section 9 of the Insolvency and Bankruptcy

…

**Reasoning:** The Tribunal reasoned that the date of default was 07/09/2019, and the limitation period

…

**Interpretation:** The legal issue involves the interpretation of the limitation period under the

…

**Application:** The ratio and reasoning were applied to the specific facts of the case. The

…

## Parties

- **Judges:** Shri. K.…; Shri. Manoj Kumar…
- **Appellants:** M/S Vasavi Power…
- **Respondents:** M/S PROMAC…

## Timeline

- **2016-09-03 — Work Order…**: Corporate Debtor awarded a Work Order to Operational Creditor for electrical,…
- **2017-10-12 — Work Order…**: Corporate Debtor amended the work order by…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/promac-engineering-industries-ltd-1c69bdd9