# In the matter of PSA Impex Pvt. Ltd. Company Petition No. IB-11-ND-2022

> NCLT judgment dated 2022-04-18. Citation: TCN-2022-NCLT-03237. The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 Apr 2022
- **Citation:** TCN-2022-NCLT-03237
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/psa-impex-pvt-ltd-company-petition-no-ib-11-nd-2022-164db6ac

## Summary

### Background

The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/S Rudra Buildwell Constructions Pvt Ltd (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/S PSA Impex Pvt Ltd (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for materials supplied. The Adjudicating Authority sought clarification on whether Section 10A of the IBC, 2016, applied to the case.

## Facts

M/S Rudra Buildwell Constructions Pvt Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/S PSA Impex Pvt Ltd (Corporate Debtor). The Operational Creditor supplied materials to the Corporate Debtor and raised invoices from 2019-06-11 to 2021-05-31, totaling Rs 3,41,22,413. The Corporate Debtor confirmed the debt and provided an undertaking for full and final payment. The Operational Creditor sent a reminder letter on 2021-06-02, to which the Corporate Debtor responded on 2021-06-03, acknowledging its inability to pay due to financial stress. A demand notice under Section 8 of the IBC was issued on 2021-12-06, for Rs 5,39,60,674, including interest at 18% p.a. The notice was duly

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The Adjudicating Authority considered the documents and submissions, including the demand

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The Operational Creditor demonstrated the existence of a debt and a default.

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## Parties

- **Judges:** BACHU VENKAT…; Virendra Kumar…
- **Appellants:** M/S Rudra…
- **Respondents:** M/s. PSA Impex…

## Timeline

- **2019-06-11 — Invoice Perio…**: Start date of the period during which the Operational Creditor raised invoices to the…
- **2021-05-31 — Invoice Per…**: End date of the period during which the Operational Creditor raised invoices to the…

## 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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