# In the matter of Abhishek Corporation Ltd. CP 1499-I&BP-NCLT-MAH-2017

> NCLT judgment dated 2017-11-17. Citation: TCN-2017-NCLT-00184. The case involves a petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 by…

- **Court:** NCLT
- **Order date:** 17 Nov 2017
- **Citation:** TCN-2017-NCLT-00184
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abhishek-corporation-ltd-cp-1499-ibp-nclt-mah-2017-6d7bd239

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 by Shri Karvir Nivasini Mahalaxmi Ispat Pvt. Ltd. (Operational Creditor) against Abhishek Corporation Ltd. (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor failed to make payments for Metal TMT Bars supplied between 2008 and 2009, amounting to ₹54,77,873. A Memorandum of Understanding (MOU) was executed on 2014-11-01, acknowledging the outstanding amount. Despite the MOU and partial payments, the Corporate Debtor failed to fulfill its payment obligations.

## Facts

Shri Karvir Nivasini Mahalaxmi Ispat Pvt. Ltd. (Operational Creditor) supplied Metal TMT Bars to Abhishek Corporation Ltd. (Corporate Debtor) between 2008-09-09 and 2009-05-08, totaling ₹54,77,873. The Corporate Debtor failed to make the payments. On 2014-11-01, a Memorandum of Understanding (MOU) was executed, acknowledging the outstanding amount of ₹54,77,873. The Corporate Debtor made a payment of ₹20,00,000 on 2014-08-04. The MOU outlined further payments: ₹5,00,000 in six-monthly intervals starting 2015-03-31, and a final payment of ₹4,77,873 due on 2017-09-30. The Corporate Debtor failed to adhere to the payment schedule. The Operational Creditor issued a Section 8 notice on 2017-09-15, claiming ₹64,79,888 outstanding as of 2017-09-14, including 12% interest on

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## Issues and analysis

### Issue 1: Whether the Petitioner has proved the existence of debt and occurrence of default to the …

**Ratio:** The legal principle applied is that under Section 9 of the Insolvency & Bankruptcy

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**Reasoning:** The court reasoned that the Memorandum of Understanding, the Section 8 notice, the bank

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**Interpretation:** The interpretation involves understanding the requirements for admitting a

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**Application:** The court applied the ratio to the facts by considering the MOU, Section 8

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** Karvir Nivasini…
- **Respondents:** Abhishek Corporati…

## Timeline

- **2008-09-09 — Supply of…**: Operational Creditor supplied…
- **2009-05-08 — End of Supply…**: End date of the period for which…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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