# In the matter of Aanchal Ispat Limited C.P.(IB) 1129-KB-2019

> NCLT judgment dated 2020-02-21. Citation: TCN-2020-NCLT-01844. The case involves an application for the initiation of a corporate insolvency resolution…

- **Court:** NCLT
- **Order date:** 21 Feb 2020
- **Citation:** TCN-2020-NCLT-01844
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aanchal-ispat-limited-cpib-1129-kb-2019-609b1ee5

## Summary

### Background

The case involves an application for the initiation of a corporate insolvency resolution process (CIRP) filed by Shyam Metalics and Energy Limited (Operational Creditor) against Aanchal Ispat Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for Portland Clinker supplied under a High Sea Sale Agreement. The Corporate Debtor disputed the claim, alleging issues with the quality and quantity of the supplied materials, and raised debit notes against the Operational Creditor. The Operational Creditor argued that the Corporate Debtor acknowledged the debt through various communications and that the debit notes were never properly communicated or proven.

## Facts

Shyam Metalics and Energy Limited (Operational Creditor) is engaged in the production of steel, ferro alloys, and power. Aanchal Ispat Limited (Corporate Debtor) approached the Operational Creditor in October-November 2017 to procure Portland Clinker. Due to a lack of funds, the Corporate Debtor could not immediately open a Letter of Credit (LC). The Corporate Debtor agreed to pay LC opening charges, margin, buyer's credit charges, exchange fluctuations, and insurance charges. The Operational Creditor opened an LC with Canara Bank on January 17, 2018, which was amended on January 18, 2018, and availed of buyer's credit for USD 2006014.00. The Operational Creditor initiated the import of Portland Clinker from Vietnam in December 2017. 43,609 MT of Portland Clinker was

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The court considered the pleadings, documents, and arguments presented by both parties.

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**Interpretation:** Section 9 of the IBC provides the framework for an operational creditor to

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**Application:** The court found that the Operational Creditor's application was maintainable as

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Shyam Met…
- **Respondents:** Aanchal Ispat…; Aanchal Isp…
- **Advocates:** Abhrajit…; AJAY CHOU…; +6 more

## Timeline

- **2017-10-01 — Corporate Debtor…**: The Corporate Debtor approached the Operational…
- **2018-01-17 — LC Opened with Canara…**: The Operational Creditor opened a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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