# M/S. SHIVANI ENTERPRISES vs. M/S. S SQUARE CARGO MOVERS PRIVATE LIMITED

> NCLAT judgment dated 17 Apr 2026. Citation: TCN-2026-NCLAT-00026. M/s. Shivani Enterprises (Appellant/Operational Creditor) supplied goods to M/s. S Square…

- **Court:** NCLAT
- **Order date:** 17 Apr 2026
- **Citation:** TCN-2026-NCLAT-00026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-shivani-enterprises-vs-ms-s-square-cargo-movers-private-limited-vlgfp

## Summary

### Background

M/s. Shivani Enterprises (Appellant/Operational Creditor) supplied goods to M/s. S Square Cargo Movers Private Limited (Respondent/Corporate Debtor), generating invoices totaling Rs. 1,52,02,816/-. After a part-payment, a principal amount of Rs. 70,54,167/- remained outstanding. The Appellant claimed Rs. 1,06,09,920/- including 3% p.a. compounded interest stipulated in the invoices for delayed payments. A Section 8 demand notice was issued on 03.03.2025. Upon non-payment, the Appellant filed a Section 9 application under the IBC, which the Adjudicating Authority (NCLT, Cuttack Bench) dismissed on 16.01.2026, finding that the operational debt, excluding disputed interest, did not meet the statutory threshold limit of Rs. 1 Crore under Section 4 of the IBC.

## Facts

M/s. Shivani Enterprises (Appellant/Operational Creditor) supplied goods to M/s. S Square Cargo Movers Private Limited (Corporate Debtor).

Invoices aggregating Rs. 1,52,02,816/- were raised by the Appellant.

The Corporate Debtor made a part-payment of Rs. 48,58,837/-, leaving a principal amount of Rs. 70,54,167/- outstanding.

Invoices stipulated a levy of compounded interest at 3% p.a. on delayed payments.

The total amount claimed by the Appellant, including interest, was Rs. 1,06,09,920/-.

The goods supplied by the Appellant were received and accepted by the Corporate Debtor without any disputes.

A Section 8 demand notice was issued to the Corporate Debtor on 03.03.2025 by the Operational Creditor.

The Corporate Debtor did not repay the outstanding amount.

…

## Issues and analysis

### Issue 1: Whether mere stipulation of interest in the invoices makes the interest amount form part of …

**Ratio:** For an interest component to be included as part of operational debt for the purpose of

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**Reasoning:** The Adjudicating Authority (and subsequently the NCLAT) relied on several precedents

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**Interpretation:** The tribunal interpreted 'operational debt' and the threshold requirement under

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**Application:** In the present case, the Appellant admitted to the absence of a formal

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## Parties

- **Judges:** Barun M…; Ashok Bh…
- **Appellants:** M/S. SHIVANI…
- **Respondents:** M/S. S SQUARE…
- **Other parties:** Insolvency and…; Operationa…; +6 more

## Timeline

- **2025-03-03 — Section 8 Demand Notice…**: The Operational Creditor issued a Section 8 demand notice to the Corporate Debtor for…
- **2025-03-13 — Corporate Debtor's…**: The Corporate Debtor submitted a reply to the Section 8 Demand Notice, acknowledging…

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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/ms-shivani-enterprises-vs-ms-s-square-cargo-movers-private-limited-vlgfp