# Bhushan Power & Steel Limited vs. A.G. Pipes Private Limited

> NCLAT judgment dated 21 Apr 2026. Citation: TCN-2026-NCLAT-00133. Bhushan Power & Steel Limited (BPSL), the Appellant, filed an appeal against the dismissal…

- **Court:** NCLAT
- **Order date:** 21 Apr 2026
- **Citation:** TCN-2026-NCLAT-00133
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bhushan-power-steel-limited-vs-ag-pipes-private-limited-ac4fe7aa

## Summary

### Background

Bhushan Power & Steel Limited (BPSL), the Appellant, filed an appeal against the dismissal of its Section 9 petition by the National Company Law Tribunal (NCLT) on 12.07.2024. The NCLT dismissed the petition against A.G. Pipes Private Limited, the Corporate Debtor, on the grounds that the operational debt default was less than the statutory minimum of Rupees One Crore, as stipulated by Section 4 of the Insolvency and Bankruptcy Code (IBC). BPSL claimed an outstanding amount of Rs. 1,49,04,757/- from the Respondent for steel products supplied. The Corporate Debtor had raised a defense that A.G. Pipes (a proprietorship firm) and A.G. Pipes Private Limited (a company) are distinct legal entities and the debt attributed to the proprietorship cannot be clubbed with the

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## Facts

Bhushan Power & Steel Limited (Appellant/Operational Creditor) supplied steel products to A.G. Pipes Private Limited (Respondent/Corporate Debtor) and raised invoices.

An amount of Rs. 1,49,04,757/- (principal) is claimed by the Operational Creditor as outstanding.

BPSL underwent CIRP from 26.07.2017 to 05.09.2019, after which a new management took over.

The erstwhile Resolution Professional of BPSL issued a demand notice to the Respondent on 04.03.2019, which was replied to on 08.03.2019.

A second demand notice was issued by BPSL on 07.10.2021, and the Respondent replied on 13.10.2021.

BPSL filed Company Petition CP (IB) No. 277/2022 before the NCLT.

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## Issues and analysis

### Issue 1: Whether the NCLT was correct in dismissing the Section 9 petition on the ground that the debt …

**Ratio:** A petition under Section 9 of the IBC is not maintainable if the operational debt against

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**Reasoning:** The Adjudicating Authority (NCLT) dismissed the petition because the invoices raised

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**Interpretation:** Section 4 of the IBC mandates a minimum default amount for initiating CIRP.

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**Application:** Since the debt directly attributable to A.G. Pipes Private Limited was Rs.

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## Parties

- **Judges:** N. Sesha…; Arun Ba…
- **Appellants:** Bhushan Power &…
- **Respondents:** A.G. Pipes…
- **Other parties:** Insolvency and…; Operationa…; +7 more

## Timeline

- **2017-07-01 — GST Regist…**: A.G. Pipes Pvt. Ltd. obtained…
- **2017-07-26 — Appellant's CIRP…**: Appellant (BPSL) underwent Corporate Insolvency Resolution Process (CIRP) via an order…

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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/bhushan-power-steel-limited-vs-ag-pipes-private-limited-ac4fe7aa