# In the matter of Bengal India Global Infrastructure Limited CP(IB) No. 516-KB-2018

> NCLT judgment dated 2018-10-11. Citation: TCN-2018-NCLT-00596. Jai Balaji Industries Limited, the Operational Creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 11 Oct 2018
- **Citation:** TCN-2018-NCLT-00596
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bengal-india-global-infrastructure-limited-cpib-no-516-kb-2018-58d423a7

## Summary

### Background

Jai Balaji Industries Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Bengal India Global Infrastructure Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor allegedly failed to repay an operational debt of Rs. 88,39,04,705.40 towards the supply of iron and steel products. The Operational Creditor sent a demand notice under Section 8 of the I&B Code to the Corporate Debtor on 30.01.2018, which was received. The Corporate Debtor replied on 12.02.2018, admitting the debt and its non-payment.

## Facts

Jai Balaji Industries Limited (Operational Creditor) claimed that Bengal India Global Infrastructure Limited (Corporate Debtor) owed Rs. 88,39,04,705.40 for the supply of iron and steel products. The Operational Creditor issued a demand notice to the Corporate Debtor on 30.01.2018, as required under Section 8 of the Insolvency & Bankruptcy Code (I&B Code). The Corporate Debtor received the demand notice and responded on 12.02.2018, admitting the debt and its non-payment. A director of the Corporate Debtor, Mr. Arjun Kr. Santhalia, filed an affidavit admitting the outstanding debt and the Corporate Debtor's inability to pay due to stringent financial constraints. The Operational Creditor filed a bank statement showing that they had not received the claimed

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the Insolvency & …

**Ratio:** A petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, can be admitted

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**Reasoning:** The court reasoned that the Corporate Debtor admitted the debt and its non-payment. The

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**Interpretation:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP

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**Application:** The court applied the ratio to the facts by noting the Corporate Debtor's

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## Parties

- **Judges:** Madan B.…
- **Appellants:** Jai Balaji…
- **Respondents:** Bengal India…

## Timeline

- **2018-01-30 — Demand Notice…**: The Operational Creditor sent a demand notice under section 8 of the I&B Code to the…
- **2018-02-12 — Reply to Deman…**: The Corporate Debtor sent a reply…

## 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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