# In the matter of Benzfab Technologies Private Limited CP (IB) No. 201-KB-2018

> NCLT judgment dated 2018-07-11. Citation: TCN-2018-NCLT-01158. The case involves an application filed by Swastika Steel & Allied Products Private Ltd., an…

- **Court:** NCLT
- **Order date:** 11 Jul 2018
- **Citation:** TCN-2018-NCLT-01158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/benzfab-technologies-private-limited-cp-ib-no-201-kb-2018-81432607

## Summary

### Background

The case involves an application filed by Swastika Steel & Allied Products Private Ltd., an operational creditor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Benzfab Technologies Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted in paying an outstanding amount for materials supplied. The corporate debtor contested the application, alleging that the materials supplied were not as per the agreed rates and specifications. The NCLT considered the submissions of both parties and the documents on record.

## Facts

Swastika Steel & Allied Products Private Ltd., an operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Benzfab Technologies Private Limited, the corporate debtor. The operational creditor claimed that it supplied materials to the corporate debtor for Rs. 14,18,242, out of which Rs. 2,58,398 was paid in advance, leaving an outstanding of Rs. 11,59,843. The operational creditor also claimed interest at 18%. The corporate debtor received a demand notice but did not reply. The operational creditor produced a copy of the invoice, demand notice, affidavit, and certificate in compliance with Section 9(3) of the Code. The corporate debtor contended that

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor under Section 9 of the Insolvency & …

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

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**Reasoning:** The NCLT considered the submissions of both parties and the documents on record. It noted

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**Interpretation:** Section 9 provides the procedure and conditions under which an operational

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**Application:** The NCLT found that the operational creditor had filed the application under

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## Parties

- **Judges:** Jinan…
- **Appellants:** Swastika Steel &…
- **Respondents:** Benzfab Technologi…

## Timeline

- **2017-07-25 — Invoice…**: Invoice No.SSAP/M/2017-1…
- **2017-08-03 — Invoice Anne…**: Materials were supplied…

## 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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