# In the matter of Steel India Vs. Theme Developers Pvt. Ltd. CA(AT)(Ins) No. 1014 of 2019

> NCLAT judgment dated 2020-02-11. Citation: TCN-2020-NCLAT-00414. The case involves an appeal against an order passed by the Adjudicating Authority regarding…

- **Court:** NCLAT
- **Order date:** 11 Feb 2020
- **Citation:** TCN-2020-NCLAT-00414
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/steel-india-vs-theme-developers-pvt-ltd-ca-959ecc26

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority regarding an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. M/s Steel India, the operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s Theme Developers Pvt. Ltd., the corporate debtor, due to a default in payment. The appellant claimed that the corporate debtor defaulted in making payment to the extent of Rs. 22,64,054/-, which included interest calculated at 2% on delayed payments for goods sold and delivered. The Adjudicating Authority rejected the petition on the grounds that the outstanding amount related solely to interest on delayed payments and that a pre-existing dispute existed.

## Facts

M/s Steel India (operational creditor) supplied steel bars to M/s Theme Developers Pvt. Ltd. (corporate debtor) for their construction activity. Invoices were raised for these supplies. The operational creditor claimed that the corporate debtor defaulted in making payments, leading to an outstanding amount of Rs. 22,64,054/-, inclusive of interest calculated at 2% on delayed payments. The invoices were raised in 2015. The corporate debtor made a payment of the principal amount (Rs. 13,35,952/-) via RTGS on January 28, 2019, after receiving a demand notice. The corporate debtor raised a dispute regarding the outstanding interest amount (Rs. 22,64,054/-). The operational creditor relied on an email dated September 5, 2015, which allegedly showed an agreement to charge

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The I&B Code is primarily intended for the resolution of insolvency and not merely

…

**Reasoning:** The tribunal relied on previous judgments, such as Company Appeal (AT) (Insolvency) No.

…

**Interpretation:** The I&B Code's objective is to address insolvency and facilitate the

…

**Application:** In this case, the corporate debtor had already paid the principal amount. The

…

## Parties

- **Judges:** Venugop…; Kanthi Na…; +2 more
- **Appellants:** M/s Steel…
- **Respondents:** Theme Developers…
- **Advocates:** Mr Harsh G…; Ms Surekha…

## Timeline

- **2015-09-05 — Email regarding…**: Email sent by the operational creditor quoting rates and mentioning a 2% interest charge…
- **2018-12-28 — First Demand…**: Operational Creditor issued first…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

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/steel-india-vs-theme-developers-pvt-ltd-ca-959ecc26