National Company Law Appellate Tribunal Mr. Sudhir Bobba vs Tvn Enterprises on 14 February, 2025 NATIONAL COMPANY LAW APPELLATE TRIBUNAL AT CHENNAI (APPELLATE JURISDICTION) Company Appeal (AT) (CH) (Ins) No.95/2024 (IA Nos.262, 263 & 264/2024) In the matter of: Mr. Sudhir Bobba, Suspended Director of M/s. Servomax Ltd. H No 83678, New Pragathi Nagar Green Bawarchi Road, Yousuf Guda Hyderabad 500045 Email : [email protected] ...Appellant V M/s. TVN Enterprises, Rep by its Partner Mr. Tadapalli Venkata Ramesh 347189, Plot No. 158, Second Floor, Mahalakshmi Nivas, Old Vasavi Nagar Colony, Karkhana, Secunderabad 500015. ...Respondent No. 1 M/s. Servomax Limited Represented by the IRP Mr. Sridhar Nookala 63252/A/8 & 9, F No. 203, Mount Castle Apts, Erramanzil Colony, Nr Taj Deccan Hotel, Erramanzil, Somajiguda, Hyderabad 500082. ...Respondent No. 2 Present : For Appellant : Mr. R Venkatavaradan, Advocate For Mr. Saai Sudharsan, Advocate For Respondents : Ms. Himangini Sanghi, Advocate, For R1 Company Appeal (AT) (CH) (Ins) No.95/2024 Page 1 of 19 JUDGMENT (Hybrid Mode) [Per: Jatindranath Swain, Member (Technical)] 1. The instant Company Appeal (AT) (CH) (Ins) No.95/2024 has been preferred by the Appellant, the suspended Director of the Corporate Debtor, M/s Servomax Limited, under Section 61 of I & B Code, 2016, being aggrieved by the Impugned Order dated 22.02.2024 passed by the Hon'ble NCLT, Hyderabad Bench I in CP(IB) No.361/09/HDB/2022, by virtue of which the Ld. Adjudicating Authority admitted the Application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the Operational Creditor TVN Enterprises, Respondent herein, against the Corporate Debtor, M/s Servomax Limited. 2. Brief Facts of the Case: The Corporate Debtor (CD), M/s Servomax Limited, being the company incorporated under the provisions of the Companies Act, 2013 on 08.11.2017, is engaged in the Business of manufacturing transformers. The Respondent No.1 M/s TVN Enterprises, the Operational Creditor (OC) is a Registered Partnership firm and has also been registered as an MSME (Micro, Small, and Medium Enterprises) Unit. As per the averments made, the Operational Creditor is engaged in the purchase and sale of merchandise goods including the supply of spare parts for transformers and Company Appeal (AT) (CH) (Ins) No.95/2024 Page 2 of 19 related goods. Owing to a longstanding business relationship between them, the Corporate Debtor had issued various purchase orders to the Operational Creditor for the supply of goods including copper conductors and core assembly units till 15.09.2020. The Operational Creditor had also made the supply of goods as per the purchase orders issued by the Corporate Debtor and had raised invoices for such supply. The Corporate Debtor had also made payments to the Operational Creditor from time to time against such invoices. During the course of such transactions, it was found that a sum of Rs.1,00,49,270/ (Rupees One Crore and FortyNine Thousand and two Hundred and Seventy only) remained unpaid to the Operational Creditor. 3. The Respondent No.1 / Operational Creditor, had recorded on 11.09.2022, the particulars of the amount of Rs.1,00,49,270/ (Rupees One Crore and FortyNine Thousand and Two Hundred and Seventy only) pending from the Corporate Debtor with NeSL, records as on 29.09.2022. Further, he issued a demand notice dated 28.09.2022 to the Corporate Debtor under Section 8 of the I & B Code, 2016. Subsequently, the 1st Respondent filed the Application under Section 9 of the Code before the Ld. NCLT, Hyderabad, which came to be numbered as CP(IB)No.361/09/HDB/2022, seeking initiation of CIRP against the Corporate Debtor, Ld. NCLT vide Company Appeal (AT) (CH) (Ins) No.95/2024 Page 3 of 19 its order dated 22.02.2024 had allowed the said Application and ordered initiation of CIRP against the Corporate Debtor. 4. The Ld. Adjudicating Authority has admitted the Section 9 application of the Respondent / Operational Creditor on following premises: a. On the date of filing of Section 9 petition, that is, 11.11.2022, the operational debt claimed as due and in default, was Rs. 1,00,49,270/ (Rupees One Crore FortyNine Thousa