# In the matter of Empathy Infra & Engineering Private Limited CP (IB) No.234-Chd-Hry-2018

> NCLT judgment dated 2019-12-19. Citation: TCN-2019-NCLT-00073. Bhuleshwar Steel and Alloys Private Limited filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 19 Dec 2019
- **Citation:** TCN-2019-NCLT-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/empathy-infra-engineering-private-limited-cp-ib-no234-chd-hry-2018-1824f08d

## Summary

### Background

Bhuleshwar Steel and Alloys Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the corporate insolvency resolution process (CIRP) against Empathy Infra and Engineering Private Limited. Bhuleshwar claimed that Empathy defaulted on payments for the supply of TMT Bars, iron, and steel material. Empathy contested the application, arguing the existence of a dispute and the non-joinder of a necessary party, POSCO E & C India Private Limited, with whom Empathy had an agreement related to the project for which Bhuleshwar supplied the materials.

## Facts

Bhuleshwar Steel and Alloys Private Limited (Bhuleshwar) is an operational creditor engaged in the business of manufacturing, sales, and supply of TMT Bars, iron, and steel material. Empathy Infra and Engineering Private Limited (Empathy) is the corporate debtor. Bhuleshwar supplied steel material to Empathy based on purchase order No.EIEPL / POSCO / BSAPL / Niv-Hills / 14-15 / 007, dated 27.04.2015, amounting to Rs.27,10,967/-. Empathy made payments totaling Rs.19,00,000/- (Rs.15,00,000/- on 29.07.2015 and Rs.4,00,000/- on 26.10.2015), leaving a balance of Rs.8,10,967/-. Bhuleshwar issued a demand notice dated 01.11.2017, which was delivered to Empathy on 06.11.2017. Empathy did not provide a reply to the demand notice. Empathy claimed that a dispute existed due to an

…

## Issues and analysis

### Issue 1: Whether a genuine dispute exists between Bhuleshwar and Empathy regarding the unpaid operational …

**Ratio:** The adjudicating authority must reject the application under Section 9(5)(2)(d) if notice

…

**Reasoning:** The court considered Empathy's argument that a dispute existed due to its agreement with

…

**Interpretation:** The court interpreted the provisions of Section 9(5)(2)(d) of the Code,

…

**Application:** The court applied the ratio to the facts of the case, noting that Empathy

…

## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Bhuleshwar Steel…
- **Respondents:** Empathy Infra and…

## Timeline

- **2015-04-27 — Purchase…**: Empathy placed purchase order No.EIEPL / POSCO / BSAPL / Niv-Hills / 14-15 / 007 for…
- **2015-07-29 — Payment by…**: Empathy made a payment of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/empathy-infra-engineering-private-limited-cp-ib-no234-chd-hry-2018-1824f08d