# In the matter of  S V Equipments Pvt. Ltd. CP (IB) No. 79-9-HDB-2022

> NCLT judgment dated 2022-06-21. Citation: TCN-2022-NCLT-04644. The Operational Creditor, Siddhi Ganesh Metals Pvt Ltd, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 21 Jun 2022
- **Citation:** TCN-2022-NCLT-04644
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/s-v-equipments-pvt-ltd-cp-ib-no-79-9-hdb-2022-ba7039fa

## Summary

### Background

The Operational Creditor, Siddhi Ganesh Metals Pvt Ltd, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against the Corporate Debtor, M/s. S V Equipments Pvt Ltd, for defaulting on a payment of Rs. 1,40,81,649/-.

## Facts

Siddhi Ganesh Metals Pvt Ltd, the Operational Creditor, filed a petition against M/s. S V Equipments Pvt Ltd, the Corporate Debtor, under Section 9 of the IBC, 2016.

The Corporate Debtor defaulted on a payment of Rs. 1,40,81,649/-.

The Operational Creditor and Corporate Debtor agreed to terms and conditions where material should be supplied immediately and payment terms are 60 days.

The Operational Creditor issued a statutory notice on 22.11.2021 for Rs. 1,80,81,649/-.

The Corporate Debtor replied to the notice on 09.12.2021 and paid Rs. 20,00,000/- on 19.12.2021 and Rs. 20,00,000/- on 13.01.2022.

A demand notice under Section 8 of the I&B Code, 2016, was issued on 01.12.2021.

The Corporate Debtor utilized the material but defaulted on payment as per the agreement.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default exceeding the minimum threshold under the IBC, …

**Ratio:** The Corporate Debtor defaulted on a payment of Rs. 1,40,81,649/-, which is more than the

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**Reasoning:** The Adjudicating Authority noted that the Corporate Debtor utilized the material but

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**Interpretation:** The IBC, 2016, allows for the initiation of CIRP if the default amount is above

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**Application:** The Adjudicating Authority applied the provision of the IBC, 2016, and

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## Parties

- **Judges:** N. Venkata…; Veera Brahma Rao…
- **Appellants:** Siddhi Ganesh…
- **Respondents:** M/s. S V Equipment…
- **Other parties:** Sreedhar…

## Timeline

- **2021-03-N/A — Purchase…**: Corporate Debtor approached Operational Creditor and issued a purchase order of SS Sheets…
- **2021-11-22 — Statutory…**: Operational creditor issued statutory notice…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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