# In the matter of Capacit'e Infraprojects Limited CP (IB) No.1579-MB-C-IV-2019

> NCLT judgment dated 2020-04-28. Citation: TCN-2020-NCLT-01402. Vitson Steel Corp Private Limited, the Operational Creditor, filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 28 Apr 2020
- **Citation:** TCN-2020-NCLT-01402
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/capacite-infraprojects-limited-cp-ib-no1579-mb-c-iv-2019-1c7d42e9

## Summary

### Background

Vitson Steel Corp Private Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Capacit'e Infraprojects Limited, the Corporate Debtor, due to non-payment of ₹13,84,122.00 as principal and ₹60,81,842.00 as interest. The Operational Creditor claimed to have supplied JSW Neo Steel TMT Bars Fe 500D to the Corporate Debtor based on purchase orders. The Corporate Debtor disputed the interest component, stating it was never contracted for and that the Operational Creditor failed to comply with statutory liabilities regarding GST on the invoices. The Corporate Debtor also argued that the petition was defective due to the absence of a bank certificate

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## Facts

Vitson Steel Corp Private Limited (Operational Creditor) filed a petition against Capacit'e Infraprojects Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, claiming a default of ₹13,84,122.00 as principal and ₹60,81,842.00 as interest. The Operational Creditor supplied JSW Neo Steel TMT Bars Fe 500D to the Corporate Debtor based on purchase orders. The Operational Creditor served a demand notice dated 26.02.2019. The Corporate Debtor replied on 12.03.2019, stating that all payments except ₹13,84,129.37 had been paid and that the 24% interest was not tenable. The Corporate Debtor made a payment of ₹15.00 lakh on 05.03.2019. The Corporate Debtor argued that the petition was defective because the bank certificate mandated by section

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## Issues and analysis

### Issue 1: Whether the petition is defective due to the non-attachment of the bank certificate as mandated by …

**Ratio:** Section 9(3)(c) of the IBC mandates the submission of a bank certificate with the

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**Reasoning:** The Corporate Debtor argued that the petition was defective because the bank certificate

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**Interpretation:** The bank certificate is a mandatory requirement for a petition under Section 9

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**Application:** The absence of the bank certificate was one of the factors considered by the

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Vitson Steel Corp…
- **Respondents:** Capacit'e…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency & Bankruptcy…
- **2019-02-26 — Demand N…**: The Operational Creditor served a Demand…

## 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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