# In the matter of Manoj Stone Infra Pvt. Ltd. vs. Railsys Engineers Pvt. Ltd.

> NCLAT judgment dated 2023-07-11. Citation: TCN-2023-NCLAT-00389. This is an appeal filed under Section 61 of the Insolvency and Bankruptcy Code (IBC) by Manoj…

- **Court:** NCLAT
- **Order date:** 11 Jul 2023
- **Citation:** TCN-2023-NCLAT-00389
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/manoj-stone-infra-pvt-ltd-vs-railsys-engineers-pvt-ltd-a4a9e91f

## Summary

### Background

This is an appeal filed under Section 61 of the Insolvency and Bankruptcy Code (IBC) by Manoj Stone Infra Pvt. Ltd. against an order dated 24.03.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Court-III) in CP(IB) No. 367 of 2022. The Adjudicating Authority had dismissed Section 9 application filed by the Appellant seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Railsys Engineers Pvt. Ltd.

## Facts

Manoj Stone Infra Pvt. Ltd. (Appellant), an operational creditor, filed an application under Section 9 of the IBC to initiate CIRP against Railsys Engineers Pvt. Ltd. (Respondent/Corporate Debtor). The Appellant claimed that the Respondent owed them Rs. 1,94,41,234/-. The Appellant supplied signaling cables and other electronic items to the Respondent for onward supply to RITES Ltd. Two invoices totaling Rs. 2,57,26,234/- were raised and acknowledged by the Respondent with the remark 'Proceed for Payment'. The Respondent made a partial payment of Rs. 62,85,000/-. The Appellant issued a demand notice on 08.02.2022 under Section 8 of the IBC, which the Respondent did not reply to. The Respondent contended that there was no debt to be paid due to a pre-existing dispute

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## Issues and analysis

### Issue 1: Whether the debt claimed by the Appellant constitutes an 'operational debt' under the Insolvency …

**Ratio:** Section 5(21) of the IBC defines 'operational debt' as a claim in respect of the

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**Reasoning:** The Adjudicating Authority held that the claim arose out of a mutual business

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**Interpretation:** The definition of 'operational debt' under Section 5(21) of the IBC is

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**Application:** The Appellate Tribunal found that the Appellant had submitted invoices

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Manoj Stone Infra…
- **Respondents:** Railsys Engineers…

## Timeline

- **2022-02-08 — Demand Notice…**: The Appellant issued a demand notice to the…
- **2022-03-01 — Section 9 Application…**: The Appellant filed a Section 9 application before the Adjudicating Authority after the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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