The NCLT admitted a Section 9 petition filed by Navdurga Trade Centre against Sangha Erectors Pvt Ltd. The court found sufficient evidence of operational debt and default, initiating CIRP, declaring moratorium, and appointing an IRP.
Petition admitted, CIRP initiated, moratorium declared, Shri Ritesh Mittal appointed as IRP.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
S. No. 35
IN THE NATIONAL COMPANY LAW TRIBUNAL HYDERABAD BENCH – 1 ATTENDANCE CUM ORDER SHEET OF THE HEARING HELD ON 13-05-2022 AT 10:30 A.M. THROUGH VIDEO CONFERENCE
CP (IB) No. 497/9/HDB/2019 U/s. 9 of IBC, 2016
IN THE MATTER OF:
Navdurga Trade Centre … Operational Creditor Vs Sangha Erectors Pvt Ltd … Corporate Debtor
CORAM
DR. VENKATA RAMAKRISHNA BADARINATH NANDULA, HON’BLE MEMBER (JUDICIAL) SH. VEERA BRAHMA RAO AREKAPUDI, HON’BLE MEMBER (TECHNICAL)
ORDER
Orders pronounced in Company Petition CP(IB) No. 497/9/HDB/2019. Recorded vide separate sheets. In the result, the petition is allowed. The Corporate Debtor is put into CIRP as per the terms and conditions mentioned therein.
Sd/Sd/- MEMBER (T) MEMBER (J)
BM
IN THE NATIONAL COMPANY LAW TRIBUNAL
HYDERABAD BENCH, HYDERABAD
CP (IB) No.497/9/HDB/2019
Under section 9 of Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.
In the matter of
M/s Navdurga Trade Centre
Represented by its Managing Partner Harish Harshadrai Bhatt 2-2-105 to 108/9 Ganesh Chamber, Ranigunj Secunderabad – 500003.
.. Petitioner/ Operational Creditor
VERSUS
M/s Sangha Erectors Pvt Limited Represented by its Director Harpreet Singh Sangha Plot No.1, Vasavi Nagar Kakaguda Village, Lkpicket Secunderabad – 500003.
.. Respondent Corporate Debtor
Date of order: 13th May 2022
Coram : HON’BLE DR. VENKATA RAMAKRISHNA BADARINATH NANDULA, MEMBER (JUDICIAL) and
HON’BLE SHRI VEERA BRAHMA RAO AREKAPUDI
MEMBER (TECHNICAL)
Parties / counsels present :
For the Petitioner: Ms. A. Sandhya Rani, Advocate.
For the Respondent: Shri K.V. Raman, Advocate
ORDER
This petition is filed by M/s Navdurga Trade Centre/ Operational Creditor,
stating that principal amount of Rs.26,59,949/- plus interest amounting to Rs.2,59,272/- for the period from 06.10.2018 to 19.03.2019 are due and payable to the Corporate Debtor towards tax invoices raised against supply of industrial equipments/ consumable products. Hence this petition is filed under section 9 of Insolvency and Bankruptcy Code, 2016, read with Rule 6 of Insolvency & Bankruptcy (Application to the Adjudicating Authority) Rules, 2016, seeking admission of the petition, initiation of Corporate Insolvency Resolution Process, granting moratorium and appointment of Interim Resolution Professional as prescribed under the Code and Rules thereon.
and Invoices for the period from 01.04.2014 to 31.03.2015 (Annexure A, Vol.1 of the petition), industrial equipments/ consumable products to the Corporate Debtor pursuant to an understanding between the Operational
Creditor and Corporate Debtor. The Operational Creditor has raised invoices towards the same.
documents, the Corporate Debtor has disputed the claim made by the Operational Creditor.
furnished along with Form-3. Whatever documents furnished so far are fabricated ones. Still document-5, viz. Principal and interest calculation sheet is not attached. For want of supply of requisite documents the Operational Creditor has not complied with the requirements of I&B Code. The Corporate Debtor has asked the Operational Creditor to withdraw Form-3.
that:
good condition” can be found duly signed and stamped. That signifies the goods having been received by the representative of the Corporate Debtor.
Whether the documentary evidence furnished with the application establishes an operational debt as claimed by the Operational Creditor and the Corporate Debtor defaulted in payment of the said operational debt?
01.04.2019 has been sent by the Corporate Debtor with some frivolous and baseless pleas.
on delivery challans are disputed as the same are ingenuine. Therefore, the claim is liable to be dismissed.
counter. It may be stated herein that prior to receipt of Demand Notice dated 20.03.2019 the Corporate Debtor never raised any such plea or any dispute. So much so, the submission of the learned counsel for the Corporate Debtor that the seal and signature of some of the invoices are forged and fabricated is baseless and hence rejected.
Insolvency Resolution Process under section 9 of the Insolvency & Bankruptcy Code, 2016,
(B) The Bench hereby prohibits the institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgment, decree or order in any court of law, Tribunal, arbitration panel or other authority; transferring , encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002); the recovery of any property by an owner or lessor where such property is occupied by or in possession of the corporate Debtor;
(C) That the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period.
(D) Notwithstanding anything contained in any other law for the time being in force, a license, permit, registration, quota, concession, clearances or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for
the use or continuation of the license, permit, registration, quota, concessions, clearances or a similar grant or right during the moratorium period.
the completion of the Corporate Insolvency Resolution Process or until this Bench approves the Resolution Plan under Sub-Section (1) of Section 31 or passes an order for liquidation of Corporate Debtor under Section 33, whichever is earlier.
(H) That this Bench hereby appoints Shri Ritesh Mittal having IBBI Registration No . IBBI/IPA-001/IP-P00888/2017-2018/11485, having address at Sanjay Kumar Kothari & Company, 205, Doshi Chambers, Basheer Bagh, Hyderabad, West Marredpally, Telangana-500029, email: [email protected] a s Interim Resolution Professional to carry the functions as mentioned under the Insolvency & Bankruptcy Code. The Operational Creditor has filed Memo dated 12.04.2022 enclosing Form-2 dated 12.04.2022 submitted by Shri Ritesh Mittal. His
Authorisation for Assignment is valid till 25.10.2022. This information is also available in IBBI Website. Thus, there is compliance of Regulation 7A of IBBI (Insolvency Professionals) Regulations, 2016, as amended. Therefore, the proposed
IRP is fit to be appointed as IRP since the relevant provision is complied with.
Sd/Sd/-
VEERA BRAHMA RAO AREKAPUDI DR. N.V. RAMAKRISHNA BADARINATH MEMBER (TECHNICAL) MEMBER (JUDICIAL)
Karim
3 issues framed by the court
Whether the documentary evidence establishes an operational debt and corporate debtor default?
Whether the Insolvency and Bankruptcy Code provisions should be applied to initiate Corporate Insolvency Resolution Process?
Whether to appoint an Interim Resolution Professional?
2 provisions across 1 enactments
Navdurga Trade Centre
Sangha Erectors Pvt Ltd
Venkata Ramakrishna Badarinath Nandula
Veera Brahma Rao Arekapudi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
