# In the matter of Bee Kay Precision (India) Pvt. Ltd. Company Petition (IB)No.70-ALD-2018

> NCLT judgment dated 2018-08-21. Citation: TCN-2018-NCLT-00914. The case involves a Company Petition (IB) No. 70/ALD/2018 filed under Section 9 of the…

- **Court:** NCLT
- **Order date:** 21 Aug 2018
- **Citation:** TCN-2018-NCLT-00914
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bee-kay-precision-india-pvt-ltd-company-petition-ibno70-ald-2018-8c4194eb

## Summary

### Background

The case involves a Company Petition (IB) No. 70/ALD/2018 filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by R.G. Steel, an operational creditor, against Bee Kay Precisum (India) Pvt. Ltd., the corporate debtor. R.G. Steel claimed that Bee Kay Precisum defaulted on payments for goods (Iron and Steel) supplied on credit. The operational creditor issued a demand notice on 03.01.2018, seeking the outstanding amount, including principal and interest. The corporate debtor objected to the application, citing deficiencies in the demand notice and alleging that the operational creditor supplied poor quality goods, causing financial injury. The corporate debtor also claimed to be an operational creditor of LML Ltd., with a significant amount outstanding.

## Facts

R.G. Steel, a registered proprietorship firm, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Bee Kay Precisum (India) Pvt. Ltd., a company incorporated under the Companies Act, 1956. R.G. Steel claimed to be an operational creditor of Bee Kay Precisum, alleging that Bee Kay Precisum had defaulted on payments for goods (Iron and Steel) supplied on credit. The total outstanding debt, including principal and interest, was Rs. 10,39,685.84. R.G. Steel issued a demand notice on 03.01.2018, seeking the outstanding amount. Bee Kay Precisum objected to the application, claiming deficiencies in the demand notice and alleging the supply of poor-quality goods. Bee Kay Precisum also claimed to be an operational creditor of LML Ltd., with a

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The NCLT reasoned that the operational creditor, R.G. Steel, had complied with the

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**Interpretation:** Section 9 of the IBC is interpreted to provide a mechanism for operational

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**Application:** In this case, the NCLT applied the provisions of Section 9 of the IBC to the

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## Parties

- **Judges:** SH. V.P.…; Ms Saroj R…
- **Appellants:** R.G. S…
- **Respondents:** Bee Kay Precisum…; M/s. Bee Kay…

## Timeline

- **2018-01-03 — Demand Notice…**: Operational Creditor, R.G. Steel, issued a Demand Notice to Corporate Debtor, Bee Kay…
- **2018-08-21 — Order Del…**: NCLT Allahabad Bench delivered the order admitting the petition filed by R.G. Steel under…

## 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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