# 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-02454. 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-02454
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/balaji-fiber-reinforce-pvt-ltd-cp-no-ib-250-9-nclt-ahm-2019-fba9e97e

## 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. A demand notice was issued under Section 8 of the I&B Code on 11.01.2019, seeking payment of the outstanding amount. The corporate debtor appeared through counsel but did not file any reply and availed adjournments on the ground of settlement.

## 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, gp resin, etc. 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. The total cost of goods supplied to the respondent till 03.07.2017 was Rs. 64,31,782/-, plus interest of Rs. 21,11,244/-. The operational creditor issued a demand notice under Section 8 of the I&B Code on 11.01.2019. The corporate debtor appeared through counsel but did not file any reply and sought adjournments for settlement. A cheque of Rs. 25.00 lacs issued

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## Issues and analysis

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

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

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**Reasoning:** The adjudicating authority referred to Mobilox Innovative Private Limited vs. Kirusa

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**Interpretation:** The court must determine if the debt qualifies as an 'operational debt' as per

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**Application:** The operational creditor claimed a debt exceeding Rs. 1.00 lac, which was

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## Parties

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

## Timeline

- **2007-03-30 — Corporate Debtor…**: M/s. Balaji Fiber Reinforce Inforce Ltd.…
- **2017-07-03 — Goods Sup…**: Total cost of goods supplied to the…

## 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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