# In the matter of Arihant Impex Private Limited C.P. No. (IB) 498-9-NCLT-AHM-2018

> NCLT judgment dated 2019-11-18. Citation: TCN-2019-NCLT-00575. Siddheshwari Industries, as the operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 18 Nov 2019
- **Citation:** TCN-2019-NCLT-00575
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arihant-impex-private-limited-cp-no-ib-498-9-nclt-ahm-2018-6dd8df7f

## Summary

### Background

Siddheshwari Industries, as the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Arihant Pumps Private Limited, the corporate debtor, due to unpaid operational debt. The operational creditor claimed that they supplied goods to the corporate debtor from 19.10.2016 to 04.05.2018, for which payments were not made despite raising 33 invoices. The total amount in default, including interest, was claimed to be Rs. 1,05,77,250/-. The corporate debtor initially made regular payments but defaulted from 2016 onwards. The operational creditor issued a demand notice on 18.08.2018, which was duly served on the corporate debtor on 20.08.2018.

## Facts

Siddheshwari Industries (operational creditor) filed a petition against Arihant Pumps Private Limited (corporate debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed that they supplied goods to the corporate debtor between 19.10.2016 and 04.05.2018, evidenced by invoices and delivery challans. Initially, the corporate debtor made regular payments, but defaulted from 2016 onwards. The total outstanding amount, including interest at 24% per annum, was Rs. 1,05,77,250/-. The operational creditor issued a demand notice on 18.08.2018, which was served on the corporate debtor on 20.08.2018. The corporate debtor failed to pay the due amount or raise any dispute. Nine cheques issued by the corporate debtor towards part payment,

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## Issues and analysis

### Issue 1: Whether there is an 'operational debt' …

**Ratio:** The Insolvency and Bankruptcy Code defines 'operational debt' and sets a minimum

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**Reasoning:** The Adjudicating Authority considered the definition of 'operational debt' under the IBC

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**Interpretation:** The term 'operational debt' is interpreted as a debt in respect of the

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**Application:** The Adjudicating Authority determined that the debt claimed by Siddheshwari

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Siddheshwari…
- **Respondents:** Arihant Pumps…

## Timeline

- **2016-01-01 — Default in P…**: Corporate debtor failed to make payments…
- **2018-08-18 — Demand Notice…**: Operational creditor issued a demand…

## 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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