# In the matter of D.I. Steels Private Limited

> NCLT judgment dated 13 Nov 2024. Citation: TCN-2024-NCLT-00260. The Operational Creditor filed a petition under Section 9 of the IBC, 2016, seeking to…

- **Court:** NCLT
- **Order date:** 13 Nov 2024
- **Citation:** TCN-2024-NCLT-00260
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/di-steels-private-limited-12c3ad1f

## Summary

### Background

The Operational Creditor filed a petition under Section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor due to an alleged default in payment for goods not supplied after an advance payment was made.

## Facts

M/s. Turakhia Iron and Steel LLP, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 on August 1, 2024, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. D.I. Steels Private Limited, the Corporate Debtor. The Operational Creditor, a Limited Liability Partnership, is involved in wholesale and retail trade, while the Corporate Debtor, a Private Company incorporated on May 19, 2005, is in the steel trading business.

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## Issues and analysis

### Issue 1: Whether there exists an 'operational debt' and…

**Ratio:** An 'operational debt' and 'default' exist when the Corporate Debtor admits receiving…

**Reasoning:** The Tribunal found that the Corporate Debtor admitted receiving the advance payment and…

**Interpretation:** The court interpreted 'operational debt' under Section 5(21) and 'default'…

**Application:** Given the Corporate Debtor's admission of receiving the advance and failing to…

## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Advocates:** Adv Mily G…; Adv Avinash R…

## Timeline

- **May 19, 2005 — Incorporation of…**: M/s. D.I. Steels Private Limited was…
- **March 11, 2024 — Purchase Order…**: Operational Creditor issued two purchase orders to the Corporate Debtor for supply of GP…

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