# In the matter of Asmi Metal Products Private Limited CP No. 3806(IB)-MB-C-IV-2018

> NCLT judgment dated 2019-10-14. Citation: TCN-2019-NCLT-00998. The case originates from a petition filed by ISMT Limited, the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 14 Oct 2019
- **Citation:** TCN-2019-NCLT-00998
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/asmi-metal-products-private-limited-cp-no-3806ib-mb-c-iv-2018-21dabd38

## Summary

### Background

The case originates from a petition filed by ISMT Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Asmi Metal Products Private Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor failed to pay a sum of Rs. 54,81,142 along with interest of Rs. 32,47,764. The Operational Creditor had previously filed a special summary suit for recovery of arrears. The Corporate Debtor had also filed applications to set aside the judgment and decree, which were rejected by the court.

## Facts

ISMT Limited (Operational Creditor) filed a petition under Section 9 of the IBC, 2016, to initiate CIRP against Asmi Metal Products Private Limited (Corporate Debtor) due to non-payment of Rs. 54,81,142 plus interest of Rs. 32,47,764. The Corporate Debtor was incorporated on 27.11.1986. The Operational Creditor had previously filed a special summary suit (No.56/2012) on 21.06.2012 for recovery of arrears. The Corporate Debtor failed to remit invoices despite reminders. The court passed a judgment and decree on 18.06.2013. The Corporate Debtor filed an application (M.A. No. 774/2014) to set aside the judgment, which was rejected on 20.10.2016. A review application (No.1179/2016) was also rejected on 27.04.2018. A demand notice in Form 3 was served on 06.06.2018. The

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## Issues and analysis

### Issue 1: Whether the application made by the Operational Creditor is complete in all respects as required by …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code (IBC) and related rules specify the

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**Reasoning:** The Adjudicating Authority determined that the application was complete in all respects

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**Interpretation:** The completeness of the application is a prerequisite for admitting the

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**Application:** The application by ISMT Limited was found to be complete, satisfying the legal

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** ISMT Li…
- **Respondents:** Asmi Metal…

## Timeline

- **1986-11-27 — Incorporation of…**: Asmi Metal Products Private Limited was…
- **2011-08-29 — Date of D…**: The date of default by the Corporate…

## 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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