# 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-03243. 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-03243
- **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-a162a2f7

## 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) against M/S PSA Impex Pvt Ltd (Corporate Debtor). The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to unpaid operational debt. The Operational Creditor claimed that they supplied material to the Corporate Debtor and raised invoices from 2019-06-11 to 2021-05-31, totaling Rs 3,41,22,413. The Corporate Debtor acknowledged the debt and expressed inability to pay due to financial stress.

## 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 the Corporate Insolvency Resolution Process (CIRP) against M/S PSA Impex Pvt Ltd (Corporate Debtor). The Operational Creditor claimed that they supplied material 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 dated 2021-06-02 for clearing the outstanding dues. The Corporate Debtor acknowledged its inability to pay due to financial stress in a letter dated 2021-06-03. The Operational Creditor issued a demand notice dated

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## Issues and analysis

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

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

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**Reasoning:** The Adjudicating Authority observed that the Operational Creditor had followed the

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**Interpretation:** Section 9 provides the framework for operational creditors to initiate CIRP,

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**Application:** The Operational Creditor demonstrated that they had supplied material to the

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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…
- **2021-05-31 — Invoice Per…**: End date of the period during which…

## 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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