# In the matter of VASP ENGINEERS PRIVATE LIMITED

> NCLT judgment dated 2025-02-26. Citation: TCN-2025-NCLT-00429. This case involves an application filed by Marine Engineers (India) Limited (Operational…

- **Court:** NCLT
- **Order date:** 26 Feb 2025
- **Citation:** TCN-2025-NCLT-00429
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vasp-engineers-private-limited-22db26a6

## Summary

### Background

This case involves an application filed by Marine Engineers (India) Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against VASP Engineers Private Limited (Corporate Debtor) for the alleged default in repayment of an operational debt amounting to Rs. 11,39,676.63. The application was initially pending before Court-V of the Tribunal and later transferred to the current court. The Operational Creditor (OC) claimed that the Corporate Debtor (CD) failed to make full payment for the supply of goods under multiple Purchase Orders (POs).

## Facts

Marine Electricals (India) Limited, the Operational Creditor (OC), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against VASP Engineers Private Limited, the Corporate Debtor (CD), for an alleged default in repayment of an operational debt of Rs. 11,39,676.63. The OC claimed that the CD issued Purchase Orders (POs) for the procurement of VCB (Vacuum Circuit Breaker) panels, which were duly delivered as per the agreed terms. The OC raised invoices against the respective amounts for the goods delivered. The CD made part-payments against the invoices, leaving outstanding amounts. The total outstanding principal amount was Rs. 7,56,413, with an additional interest amount of Rs.

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## Issues and analysis

### Issue 1: Whether there exists operational debt and …

**Ratio:** The existence of an operational debt and default is established when the Corporate Debtor

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**Reasoning:** The Corporate Debtor (CD) failed to respond to the Demand Notice and did not raise any

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**Interpretation:** Section 9 of the IBC requires the existence of an operational debt and default

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**Application:** The CD's failure to pay for the goods supplied by the OC, coupled with the

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Marine Electricals…
- **Respondents:** VASP Engineers…

## Timeline

- **2016-12-06 — Purchase Orde…**: PO Ref: V/POMV/15-16/12 R2…
- **2017-03-21 — Purchase Orde…**: PO Ref: V/POMV/15-16/14 R1…

## 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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