# In the matter of BTI Tex Private Limited C.P. No. (IB) 360-9-NCLT-AHM-2018

> NCLT judgment dated 2019-11-22. Citation: TCN-2019-NCLT-00482. Pankaj Steel, an operational creditor, filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 22 Nov 2019
- **Citation:** TCN-2019-NCLT-00482
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bti-tex-private-limited-cp-no-ib-360-9-nclt-ahm-2018-ab8653b8

## Summary

### Background

Pankaj Steel, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against BTI Tex Private Limited, the corporate debtor, for unpaid dues related to the supply of materials. The applicant claimed that the respondent company had approached them for the purpose of purchasing various goods such as di-casted pipe scrap, scrap iron, pig iron SIL, pipe scrap annealed (broken), pig iron pencil and chips etc. The applicant had supplied materials worth Rs. 1,03,05,799/- to the respondent company from 15.10.2015 to 06.04.2016 and the applicant had raised invoices against said sales and supply of goods which were duly accepted by the respondent company without raising any complaint. The corporate debtor admitted to making part

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## Facts

Pankaj Steel, an operational creditor, supplied di-casted pipe scrap, scrap iron, pig iron SIL, pipe scrap annealed (broken), pig iron pencil and chips to BTI Tex Private Limited, the corporate debtor. The supplies were made from 2015-10-15 to 2016-04-06, amounting to Rs. 1,03,05,799/-. BTI Tex Private Limited made part payments, with the last payment of Rs. 71,31,602/- on 2016-06-30, leaving an outstanding balance of Rs. 31,74,197/-. Pankaj Steel issued a demand notice on 2018-05-31, but BTI Tex Private Limited did not reply. BTI Tex Private Limited claimed the goods were of inferior quality and requested a credit note, but did not initiate any legal or arbitration proceedings. The corporate debtor was aware of the insolvency application and had filed a reply and

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## Issues and analysis

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

**Ratio:** An operational debt is a claim in respect of the provision of goods or services. The

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**Reasoning:** The court considered the invoices and ledger accounts submitted by the operational

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**Interpretation:** Section 4 of the IBC sets the minimum threshold for initiating CIRP. The

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**Application:** The court applied the definition of operational debt and the threshold limit to

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Pankaj…
- **Respondents:** BTI Tex Pvt…

## Timeline

- **2015-10-15 — Supply of Materials…**: Pankaj Steel started supplying…
- **2016-04-06 — Supply of Mater…**: Pankaj Steel completed the supply of…

## 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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