# In the matter of Rakesh Bhailalbhai Patel vs. Vasundhara Seamless Stainless Tubes Pvt. Ltd. and Anr.

> NCLAT judgment dated 2025-10-17. Citation: TCN-2025-NCLAT-00530. The appeal arises from an order dated 22.08.2024 passed by the National Company Law Tribunal,…

- **Court:** NCLAT
- **Order date:** 17 Oct 2025
- **Citation:** TCN-2025-NCLAT-00530
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rakesh-bhailalbhai-patel-vs-vasundhara-seamless-stainless-tubes-pvt-ltd-and-anr-d887cee2

## Summary

### Background

The appeal arises from an order dated 22.08.2024 passed by the National Company Law Tribunal, Ahmedabad Bench, admitting a Section 9 petition under the Insolvency and Bankruptcy Code, 2016, initiating CIRP against Vasundhara Seamless Stainless Tubes Private Limited.

## Facts

A Sale Agreement was executed on 31.01.2019 between Vasundhara Seamless Stainless Tubes Private Limited and Hiralal Bhimjibhai Kumavat for the sale of machineries and scrap for a total consideration of Rs. 1 Crore.

Hiralal Bhimjibhai Kumavat advanced the entire sum of Rs. 1 Crore between 29.01.2019 and 27.02.2019.

The agreement obligated Hiralal Bhimjibhai Kumavat to lift the scrap within thirty days from the date of execution (31.01.2019).

Hiralal Bhimjibhai Kumavat alleged that the Corporate Debtor did not permit removal of the scrap.

Vasundhara Seamless Stainless Tubes Private Limited claimed that the scrap was duly lifted in several tranches during February itself.

Hiralal Bhimjibhai Kumavat issued a demand notice under Section 8 of the Code on 01.05.2023.

…

## Issues and analysis

### Issue 1: Whether the debt claimed qualifies as an …

**Ratio:** The definition of Operational Debt encompasses amounts paid in advance for the purchase

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**Reasoning:** The Corporate Debtor received Rs. 1 Crore from the Operational Creditor under the Sale

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**Interpretation:** A debt arising from advance payment made to a corporate debtor for the supply

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**Application:** The Operational Creditor's claim for refund of advance directly flows from the

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## Parties

- **Judges:** Indevar P…
- **Appellants:** Rakesh Bhailalbhai…
- **Respondents:** Vasundhara…; Hiralal Bhimjibhai…
- **Other parties:** Sachin Naveen…
- **Advocates:** Abhijeet…; Malak B…; +7 more

## Timeline

- **2019-01-31 — Sale Agre…**: A Sale Agreement was executed between Vasundhara Seamless Stainless Tubes Private Limited…
- **2019-01-29 — Advance P…**: Hiralal Bhimjibhai Kumavat…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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