# In the matter of Tirupati Coatings Private Limited Company Petition No.(IB)-459(ND)-2021

> NCLT judgment dated 2022-07-12. Citation: TCN-2022-NCLT-01752. The case involves a petition filed by Mr. Nitesh Bansal, the sole proprietor of M/s. Maruti…

- **Court:** NCLT
- **Order date:** 12 Jul 2022
- **Citation:** TCN-2022-NCLT-01752
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tirupati-coatings-private-limited-company-petition-noib-459nd-2021-ae8889c9

## Summary

### Background

The case involves a petition filed by Mr. Nitesh Bansal, the sole proprietor of M/s. Maruti Sales Corporation (Operational Creditor), under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Tirupati Coatings Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for goods supplied. The Corporate Debtor contested the application, citing that its properties were under the custody of a court receiver appointed by DRT-III Delhi in a separate case filed by HDFC Bank and that the default occurred during the period specified under Section 10A of the IBC, which bars initiation of CIRP for defaults occurring between March 25, 2020,

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## Facts

Mr. Nitesh Bansal, sole proprietor of M/s. Maruti Sales Corporation, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Tirupati Coatings Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). Maruti Sales Corporation, an operational creditor, supplied goods (Iron Plate, Steel Plate, Steel tube Pipe, M.S. Pipe, etc.) to Tirupati Coatings Private Limited, the corporate debtor. 33 sale invoices were raised between 2020-06-24 and 2021-01-16, totaling Rs. 2,76,19,665. The corporate debtor made part payments of Rs. 1,20,13,198, leaving an outstanding principal balance of Rs. 1,56,06,467, which fell due on 2020-06-24. Including interest at 18%, the total outstanding amount claimed was Rs. 1,69,77,327. The

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## Issues and analysis

### Issue 1: Whether the application for initiation of CIRP is maintainable given the provisions of Section 10A …

**Ratio:** Section 10A of the IBC bars the initiation of CIRP for defaults occurring on or after

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**Reasoning:** The court reasoned that the date of default, as admitted by the applicant, was June 24,

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**Interpretation:** Section 10A is interpreted as a bar on initiating CIRP for defaults occurring

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**Application:** Since the default occurred on June 24, 2020, which is within the period

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## Parties

- **Judges:** Sh. Dharminder…; BINOD KUMAR…
- **Appellants:** Nitesh B…
- **Respondents:** Tirupati Coatings…

## Timeline

- **2020-06-24 — Date of D…**: The date on which the outstanding principal…
- **2020-06-24 — Start of Invoi…**: Start date for the 33 sale invoices…

## 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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