# In the matter of Darjeeling Rolling Mills Pvt. Ltd. CP (IB) No. 166-KB-2018

> NCLT judgment dated 2018-08-28. Citation: TCN-2018-NCLT-00886. The case involves an application filed by Shakambhari Overseas Trades Private Limited…

- **Court:** NCLT
- **Order date:** 28 Aug 2018
- **Citation:** TCN-2018-NCLT-00886
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/darjeeling-rolling-mills-pvt-ltd-cp-ib-no-166-kb-2018-93157912

## Summary

### Background

The case involves an application filed by Shakambhari Overseas Trades Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Darjeeling Rolling Mills Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor allegedly defaulted in paying a sum of Rs. 1,44,26,465/- (inclusive of interest) for goods supplied by the Operational Creditor. The Operational Creditor served a demand notice under Section 8 of the I&B Code, but the Corporate Debtor did not respond or dispute the claim.

## Facts

Shakambhari Overseas Trades Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Darjeeling Rolling Mills Private Limited (Corporate Debtor). The application was based on the Corporate Debtor's alleged default in paying Rs. 1,44,26,465/- (inclusive of interest) for goods supplied by the Operational Creditor. The Operational Creditor served a demand notice under Section 8 of the I&B Code, which was received by the Corporate Debtor, but the Corporate Debtor did not respond or dispute the claim. The Operational Creditor also produced a certificate from its banker, UCO Bank, stating that the amount claimed from the Corporate Debtor had

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## Issues and analysis

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

**Ratio:** The application under Section 9 can be admitted if the Operational Creditor proves the

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**Reasoning:** The court found that the Operational Creditor had presented sufficient evidence to prove

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

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**Application:** In this case, the Operational Creditor demonstrated that the Corporate Debtor

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## Parties

- **Judges:** Madan B.…
- **Appellants:** M/s.Shakambhari…
- **Respondents:** M/s. Darjeeling…
- **Advocates:** Abhishek…

## Timeline

- **2018-04-12 — Order to set hearing ex…**: The authority decided to set the hearing of the application ex parte against the…
- **2018-01-15 — Affidavit filed by…**: Operational Creditor filed an affidavit stating that he did not receive any reply from…

## 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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