# In the matter of ALM Metals and Alloys Limited C.P. (IB) No. 690-9-NCLT-AHM-2019

> NCLT judgment dated 2021-04-05. Citation: TCN-2021-NCLT-02482. The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Apr 2021
- **Citation:** TCN-2021-NCLT-02482
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alm-metals-and-alloys-limited-cp-ib-no-690-9-nclt-ahm-2019-23b94216

## Summary

### Background

The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Mr. Suresh Kumar P. Baheti, Proprietor of M/s. Sunil Metal Corporation, against M/s. ALM Metals and Alloys Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for aluminum scrap supplied during the financial year 2014-15. The Corporate Debtor is a limited company registered under the Companies Act, 1956. The applicant filed the petition due to non-payment of outstanding invoices.

## Facts

Mr. Suresh Kumar P. Baheti, the Proprietor of M/s. Sunil Metal Corporation, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. ALM Metals and Alloys Limited, the Corporate Debtor, for non-payment of dues. The Corporate Debtor is a limited company registered on 10.12.2010. The Operational Creditor supplied aluminum scrap to the Corporate Debtor during the financial year 2014-15. The Corporate Debtor maintained a running business account with the Petitioner. The Corporate Debtor is indebted a total sum of Rs.48,02,475 to the applicant towards the goods supplied during the financial year 2014-15. The last payment was received on 10.04.2015. The outstanding amount of Rs. 48,02,475 pertains to the last 4 invoices raised by the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a …

**Ratio:** Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor failed to pay the outstanding

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**Interpretation:** The term 'default' under the IBC refers to the non-payment of debt when it has

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**Application:** The Corporate Debtor's failure to pay the outstanding invoices within the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Suresh Kumar P.…
- **Respondents:** ALM Metals &…

## Timeline

- **2014-12-09 — Invoice…**: First of the four outstanding…
- **2014-12-23 — Invoice…**: Second of the four outstanding…

## 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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