# In the matter of ECHO MOTORS AND AUTOMOBILES PRIVATE LIMITED

> NCLT judgment dated 2025-08-20. Citation: TCN-2025-NCLT-01240. The case involves an application filed by Atul Auto Limited, an Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 20 Aug 2025
- **Citation:** TCN-2025-NCLT-01240
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-guwahati/echo-motors-and-automobiles-private-limited-64fcacda

## Summary

### Background

The case involves an application filed by Atul Auto Limited, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Echo Motors and Automobiles Private Limited, the Corporate Debtor, due to non-payment of an operational debt.

## Facts

Atul Auto Limited, the Operational Creditor, filed an application under Section 9 of the IBC to initiate CIRP against Echo Motors and Automobiles Private Limited, the Corporate Debtor.

The operational debt claimed was Rs. 3,35,36,330/-.

The Corporate Debtor was a dealer of the Operational Creditor.

A meeting was held on 18.02.2019 where the Director of the Corporate Debtor admitted liability of Rs. 4,13,36,999/-.

The Corporate Debtor made part payments of approximately Rs. 80 lakhs.

Cheques issued by the Corporate Debtor were dishonored.

The Corporate Debtor approached the Gauhati High Court by filing a Writ Petition seeking to quash criminal complaints related to the dishonored cheques.

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is complete and …

**Ratio:** The application is complete and satisfies all the legal requirements for admission under

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**Reasoning:** The Adjudicating Authority found that the Operational Creditor had complied with all

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**Interpretation:** Section 9 of the Code outlines the requirements for an application to initiate

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**Application:** The Adjudicating Authority applied the provisions of Section 9 and found that

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## Parties

- **Judges:** Rammurti Ku…; Yogendra Kumar…
- **Appellants:** Atul Auto L…
- **Respondents:** Echo Motors and…
- **Other parties:** Kumar G…; Bishal Ag…
- **Advocates:** Kunal Vai…

## Timeline

- **2018-19 — Outstanding…**: The huge amount…
- **2019-02-18 — Meeting of Officials…**: Meeting of the officials…

## 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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