# In the matter of N.V. Aluminium Cast Pvt. Ltd. vs. APL Metals Ltd.

> NCLAT judgment dated 2024-09-05. Citation: TCN-2024-NCLAT-00219. The appeal was filed against the order dated 2024-01-23 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 5 Sept 2024
- **Citation:** TCN-2024-NCLAT-00219
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/nv-aluminium-cast-pvt-ltd-vs-apl-metals-ltd-9594f645

## Summary

### Background

The appeal was filed against the order dated 2024-01-23 passed by the National Company Law Tribunal (NCLT), Division Bench, Court-II, Kolkata, which rejected the Section 9 application filed by the Appellant/Operational Creditor. The NCLT's decision was based on findings that the invoices relied upon by the Operational Creditor were bogus, as per the Income Tax Authority's assessment orders. The Adjudicating Authority had also imposed a cost of Rupees One Lakh on the Applicant.

## Facts

N.V. Aluminium Cast Pvt. Ltd., the Appellant/Operational Creditor, filed an appeal against the order dated 2024-01-23 passed by the National Company Law Tribunal (NCLT), Kolkata. The NCLT had rejected the Appellant's Section 9 application under the Insolvency and Bankruptcy Code (IBC). The NCLT's decision was based on the finding that the invoices submitted by the Appellant were considered bogus by the Income Tax Authority. The Income Tax Authority's assessment orders indicated that the Appellant's invoices were disputed and revealed evasion of GST. The NCLT also noted that a significant portion of the sales made by the Appellant to the Corporate Debtor were considered bogus. The NCLT imposed a cost of Rupees One Lakh on the Appellant. The Appellant challenged the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the Section 9 application based on the …

**Ratio:** An application under Section 9 of the I&B Code can be rejected if the invoices

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**Reasoning:** The Adjudicating Authority relied on the findings of the Income Tax Department, which had

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**Interpretation:** The court interpreted Section 9 of the I&B Code to mean that the

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**Application:** In this case, the Income Tax Authority had found the invoices to be bogus, and

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** N.V. Aluminium…
- **Respondents:** APL Metal…

## Timeline

- **2024-01-23 — Order by NCLT…**: The National Company Law Tribunal (NCLT), Division Bench, Court-II, Kolkata, passed an…
- **2024-05-09 — Hearing by…**: The NCLAT heard the Learned Counsel for the Appellant and the Learned Counsel appearing…

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