# In the matter of Balaji FIber Reinforce Pvt. Ltd. C.P. No. (IB) 250-9-NCLT-AHM-2019

> NCLT judgment dated 2020-01-08. Citation: TCN-2020-NCLT-02444. M/s. Aditya Fabricators, an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 8 Jan 2020
- **Citation:** TCN-2020-NCLT-02444
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/balaji-fiber-reinforce-pvt-ltd-cp-no-ib-250-9-nclt-ahm-2019-69e8550e

## Summary

### Background

M/s. Aditya Fabricators, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Balaji Fiber Reinforce Inforce Ltd., the corporate debtor, due to a default in payment of Rs. 85,43,026/-. The operational creditor claimed that they supplied goods to the corporate debtor, raised invoices, and despite reminders, the corporate debtor failed to pay the outstanding dues. The corporate debtor appeared through counsel but repeatedly sought adjournments on the pretext of settlement without filing a reply.

## Facts

M/s. Aditya Fabricators, the operational creditor, is a partnership firm established in 2012, engaged in the business of supplying and trading polyester resin, dmc resin, and gp resin. M/s. Balaji Fiber Reinforce Inforce Ltd., the corporate debtor, is a private limited company registered on 30.03.2007. The operational creditor claimed a total default of Rs. 85,43,026/-, including interest at 18% per annum, for goods supplied to the corporate debtor until 03.07.2017. The operational creditor issued a demand notice under Section 8 of the I&B Code on 11.01.2019, seeking payment of the outstanding amount. The corporate debtor failed to pay the outstanding dues despite reminders. A cheque of Rs. 25.00 lacs issued by the respondent towards settlement was dishonored. The

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## Issues and analysis

### Issue 1: Whether there is an "operational debt" as …

**Ratio:** The legal principle is that an operational debt must exist and exceed Rs. 1.00 lac for an

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**Reasoning:** The court considered the definition of operational debt under the IBC and verified that

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**Interpretation:** The term "operational debt" is interpreted as a claim in respect of

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**Application:** In this case, the debt claimed by Aditya Fabricators for the supply of goods to

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Aditya Fabr…
- **Respondents:** Balaji Fiber…; Balaji Fiber…
- **Advocates:** Nipun si…; Vishal…; +3 more

## Timeline

- **2007-03-30 — Corporate Debtor…**: M/s. Balaji Fiber Reinforce Inforce Ltd.…
- **2012-01-01 — Operational Creditor…**: M/s. Aditya Fabricators…

## 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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