# In the matter of YOSMITE ENGINEERING PRIVATE LIMITED

> NCLT judgment dated 2025-04-04. Citation: TCN-2025-NCLT-00256. The case involves a petition filed by Mamtha Steels Corporation, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 4 Apr 2025
- **Citation:** TCN-2025-NCLT-00256
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/yosmite-engineering-private-limited-6a7e3e1d

## Summary

### Background

The case involves a petition filed by Mamtha Steels Corporation, the Operational Creditor, against Yosmite Engineering Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed outstanding dues of Rs. 57,16,918.10. Initially, the Tribunal dismissed the petition, citing a plausible dispute between the parties requiring further investigation. However, the NCLAT overturned this decision, directing the Adjudicating Authority to admit the petition and appoint an Interim Resolution Professional (IRP).

## Facts

Mamtha Steels Corporation, represented by its Proprietor Mr. Vasanram, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Yosmite Engineering Private Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed outstanding dues of Rs. 57,16,918.10, comprising a principal debt of Rs. 54,70,735 and interest of Rs. 2,46,183.10. The Operational Creditor is a Sole Proprietorship Firm, while the Corporate Debtor is a Private Limited Company. The Operational Creditor served a demand notice dated 05.12.2018. The Tribunal initially dismissed the petition on 27.07.2023, citing a plausible dispute between the parties. The Operational Creditor appealed to the NCLAT, which overturned the

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## Issues and analysis

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

**Ratio:** Section 9 of the IBC, 2016, allows an operational creditor to initiate CIRP against a

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**Reasoning:** The NCLAT observed that the Corporate Debtor had acknowledged the existence of the debt

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**Interpretation:** Section 9 requires the operational creditor to provide evidence of debt and

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**Application:** In this case, the NCLAT found that the WhatsApp messages exchanged between the

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Mamtha Steels…
- **Respondents:** Yosmite Engineerin…; Yosmite Engineerin…

## Timeline

- **2018-12-05 — Demand N…**: Demand Notice sent as per Form – III & IV dated 05.12.2018 issued by Applicant –…
- **2018-10-27 — Demand N…**: Demand Notice dated…

## 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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