# in the matter of Uttam Galva Steels Ltd. Vs DF Deutsche Forfait AG & Anr. CA (AT) No. 39-2017

> NCLAT judgment dated 28 Jul 2017. Citation: TCN-2017-NCLAT-00152. The case originated from an order dated April 10, 2017, passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 28 Jul 2017
- **Citation:** TCN-2017-NCLAT-00152
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/uttam-galva-steels-ltd-vs-df-deutsche-forfait-ag-anr-ca-f87e2a59

## Summary

### Background

The case originated from an order dated April 10, 2017, passed by the National Company Law Tribunal (NCLT), Mumbai Bench. The NCLT had admitted a joint application filed by the respondents, who claimed to be operational creditors, under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) to initiate a Corporate Insolvency Resolution Process (CIRP) against the appellant, Uttam Galva Steels Limited, the corporate debtor. The NCLT had rejected the objections raised by the appellant and directed the matter to the Insolvency & Bankruptcy Board of India for the recommendation of an Interim Resolution Professional. The appellant challenged this order before the National Company Law Appellate Tribunal (NCLAT), arguing that the application was not

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## Facts

The respondents, DF Deutsche Forfait AG & Anr., claiming to be operational creditors, filed a joint application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) to initiate a Corporate Insolvency Resolution Process (CIRP) against Uttam Galva Steels Limited, the appellant and corporate debtor. The National Company Law Tribunal (NCLT), Mumbai Bench, admitted this application on April 10, 2017, rejecting the appellant's objections and directing the Insolvency & Bankruptcy Board of India to recommend an Interim Resolution Professional.

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## Issues and analysis

### Issue 1: Whether a joint application by two or more 'operational creditors' under Section 9 of the I&B Code…

**Ratio:** A joint application under Section 9 of the I&B Code by one or more 'operational…

**Reasoning:** The court reasoned that Section 9 of the I&B Code, unlike Section 7 for financial…

**Interpretation:** The court interpreted Section 9 as requiring individual applications by…

**Application:** Applying this interpretation, the court found that the joint application filed…

## Parties

- **Judges:** S.J. Mukhop…; Balvinder…
- **Advocates:** For Appel…; Mr Sudipto…; +10 more

## Timeline

- **December 27, 2013 — Document relied upon by…**: Respondents relied on a document to fix liability on the Appellant, which the Appellant…
- **April 10, 2014 — Email from Re…**: An e-mail was forwarded by one of the Respondents to demonstrate the existence of a bona…

## 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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