[Under Section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the

Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016]

IN THE MATTER OF:

SECURE METERS LIMITED

[CIN: U74899RJ1987PLC029106]

Registered Office: E-class Pratapnagar Industrial Area

Udaipur-313003

Rajasthan.

…Operational Creditor

VERSUS

SIGNET PRODUCTS PRIVATE LIMITED

[CIN: U51909MH1999PTC122876]

Registered Office: Plot No. 16/16A

N-5, South Sector, CIDCO

Aurangabad-431003

Maharashatra.

...Corporate Debtor

Pronounced: 09.05.2024

CORAM:

HON’BLE SHRI K. R. SAJI KUMAR, MEMBER (JUDICIAL)

HON’BLE SHRI SANJIV DUTT, MEMBER (TECHNICAL)

Appearances: Hybrid

Operational Creditor: Adv. Ranit Basu, Adv. Maitri Malde

a/w Adv. Dua Shaikh

Corporate Debtor: Adv. Manoj Harit & Co.

ORDER [Per: SANJIV DUTT, MEMBER (TECHNICAL)]

1. BACKGROUND

1.1 This Application bearing C.P.(IB) No.292/MB/2020 was filed by Secure Meters Limited, the Operational Creditor on 22.01.2020 under Section 9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “the Code”) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating Corporate Insolvency Resolution Process (hereinafter referred to as “CIRP”) in respect of Signet Products Private Limited, the Corporate Debtor.

1.2 The Operational Creditor is involved in the business of manufacturing and sale of electronic meters and other related products. The Corporate Debtor, on the other hand, specialises in manufacturing of electrical equipment and services power infrastructure solutions for data centres, automation, transmission and distribution.

1.3 The Operational Creditor supplied various meters, meter-related products and other related devices and equipment to the Corporate Debtor as per the purchase orders and invoices were raised from 18.06.2018 to 12.07.2018. However, these invoices remained unpaid despite reminders. The total amount of debt claimed to be due from the Corporate Debtor is stated to be Rs.91,84,691/- (Ninety-One Lakhs Eighty-Four Thousand Six Hundred Ninety-One Rupees) comprising principal debt of Rs.82,58,544/- and interest @12% P.A. of Rs.9,26,147/- as on 03.07.2019.

1.4 The Operational Creditor issued a Demand Notice dated 03.07.2019 to the Corporate Debtor, as required under Section 8 of the Code, seeking payment of outstanding operational debt within 10 days of receipt of the notice. The Corporate Debtor neither replied to the said notice nor made payment of the aforementioned amount of operational debt due and payable to the Operational Creditor. Consequently, the Operational Creditor filed the present Application seeking initiation of CIRP in respect of the Corporate Debtor.

2. AVERMENTS OF THE OPERATIONAL CREDITOR

2.1 The Corporate Debtor placed purchase orders for various meter-related products and other related devices and equipment on the Operational Creditor between February, 2018 and June, 2018.

2.2 The Operational Creditor supplied goods in a timely manner as per the specifications and description of equipment given by the Corporate Debtor in the purchase orders. No objection regarding the quality of the goods supplied was raised by the Corporate Debtor.

2.3 The Operational Creditor sent several reminders to the Corporate Debtor to pay the outstanding sum. It addressed a written communication dated 08.01.2019 to which the Corporate Debtor replied on 10.01.2019 assuring that it would fulfil the commitment to the Operational Creditor in a time-

bound manner but later failed to pay the outstanding operational debt.

2.4 Consequently, the Operational Creditor issued a Demand Notice dated

03.07.2019 by way of Regd./ Speed Post as well as e-mail to the Corporate Debtor, as required under Section 8 of the Code, seeking payment of outstanding operational debt aggregating to Rs.91,84,691/- consisting of principal amount of invoices of Rs.82,58,544/- and further interest of Rs.9,26,147/-.

2.5 In spite of delivery of the Demand Notice, the Corporate Debtor