# In the matter of Hindustan Controls & Equipment Pvt. Ltd. C.P (IB) No.1256-KB-2019

> NCLT judgment dated 2022-07-05. Citation: TCN-2022-NCLT-04611. Mahavir Industrial Corporation, an operational creditor, filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 5 Jul 2022
- **Citation:** TCN-2022-NCLT-04611
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/hindustan-controls-equipment-pvt-ltd-cp-ib-no1256-kb-2019-58eb8556

## Summary

### Background

Mahavir Industrial Corporation, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of corporate insolvency resolution process against Hindustan Controls & Equipment Pvt. Ltd., the corporate debtor, due to unpaid operational debt.

## Facts

Mahavir Industrial Corporation (Operational Creditor) claimed that Hindustan Controls & Equipment Pvt. Ltd. (Corporate Debtor) defaulted on payments for electrical and mechanical goods supplied during 2010-2011.

The Operational Creditor served a notice under Section 434 of the Companies Act, 1956, on April 24, 2013, for a sum of Rs. 41,43,217.12.

A winding-up proceeding was initiated before the Hon'ble High Court at Calcutta against the Corporate Debtor, being C.P. No. 516/2013.

The Hon'ble High Court directed the Corporate Debtor to pay Rs. 1 Lakh per month for 42 months, starting February 10, 2014.

The Corporate Debtor paid ten installments of Rs. 1 Lakh each and then stopped payment.

…

## Issues and analysis

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

**Ratio:** The Adjudicating Authority found that the Operational Creditor had proved its case and

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**Reasoning:** The Corporate Debtor admitted its liability before the Hon'ble High Court at Calcutta but

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**Interpretation:** The application under Section 9 is maintainable if the operational debt exists

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**Application:** The Adjudicating Authority admitted the application under Section 9, declared a

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Mahavir Industrial…
- **Respondents:** Hindustan…
- **Other parties:** Suresh Mu…; Subodh Kumar…; +1 more
- **Advocates:** Sutapa Roy…; Abhijit…; +5 more

## Timeline

- **2013-04-24 — Notice under Section 434…**: Operational Creditor served a notice under Section 434 of the Companies Act, 1956, on…
- **2013-07-23 — Winding-up Pr…**: A winding-up proceeding was initiated before the Hon'ble High Court at Calcutta against…

## 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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