# In the matter of Shrinivas Electricals GTD Private Limited C.P. (IB) No. 1193-IBC-MB-2021

> NCLT judgment dated 2022-01-25. Citation: TCN-2022-NCLT-04375. The case involves a petition filed by Vardhman Cable & Conductors, an operational creditor,…

- **Court:** NCLT
- **Order date:** 25 Jan 2022
- **Citation:** TCN-2022-NCLT-04375
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shrinivas-electricals-gtd-private-limited-cp-ib-no-1193-ibc-mb-2021-042976d8

## Summary

### Background

The case involves a petition filed by Vardhman Cable & Conductors, an operational creditor, against Shrinivas Electricals GTD Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to default in payment of an operational debt amounting to Rs. 25,90,60,759.24, comprising a principal amount of Rs. 13,84,69,658 and interest of Rs. 12,05,91,101.24. The operational creditor issued a demand notice under Section 8(1) of the IBC on July 8, 2021, to which the corporate debtor replied on July 14, 2021, acknowledging the outstanding dues but failing to make any payments.

## Facts

Vardhman Cable & Conductors, an operational creditor, filed a company petition against Shrinivas Electricals GTD Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed a default of Rs. 25,90,60,759.24, including a principal amount of Rs. 13,84,69,658 and interest of Rs. 12,05,91,101.24, based on invoices for purchase orders issued by the corporate debtor. A demand notice under Section 8(1) of the IBC was issued on July 8, 2021, and received by the corporate debtor, who replied on July 14, 2021, acknowledging the outstanding dues but failing to make any payments. The corporate debtor admitted the claim of the operational

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has successfully demonstrated the existence of debt and default …

**Ratio:** The legal principle applied here is that under Section 9 of the Insolvency and Bankruptcy

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**Reasoning:** The court reasoned that the corporate debtor admitted the claim of the operational

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**Interpretation:** This issue involves the interpretation of Section 9 of the IBC, which allows an

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**Application:** In this case, the operational creditor successfully demonstrated the existence

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Vardhman Cable &…
- **Respondents:** Shrinivas…

## Timeline

- **2021-07-08 — Demand Notice…**: The Operational Creditor issued a demand notice to the Corporate Debtor under Section…
- **2021-07-14 — Reply to Deman…**: The Corporate Debtor replied to the demand notice, acknowledging the outstanding dues but…

## 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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