# In the matter of Ferrox Chemicals Private Limited C.P. (IB) No. 4633-NCLT-MB-2018

> NCLT judgment dated 2019-10-09. Citation: TCN-2019-NCLT-01065. The case involves an application filed by M/s. Rahul Engineers, an Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 9 Oct 2019
- **Citation:** TCN-2019-NCLT-01065
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ferrox-chemicals-private-limited-cp-ib-no-4633-nclt-mb-2018-d496a913

## Summary

### Background

The case involves an application filed by M/s. Rahul Engineers, an Operational Creditor, under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code), against M/s. Ferrox Chemicals Private Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default of ₹21,11,187/- including interest. The Corporate Debtor contested the application, alleging non-receipt of goods and an inflated invoice amount. The NCLT considered the submissions and evidence presented by the Operational Creditor.

## Facts

M/s. Rahul Engineers, the Operational Creditor, filed an application under Section 9 of the I&B Code against M/s. Ferrox Chemicals Private Limited, the Corporate Debtor, for initiating CIRP due to a default of ₹21,11,187/-. The default arose from the non-payment of an invoice for a 'Distillation Column (2KL) Complete set' supplied by the Operational Creditor based on a purchase order dated 03.01.2018. An invoice was raised on 04.04.2018. The Corporate Debtor issued a cheque of ₹5,00,000/- towards part payment, which was dishonored. The Operational Creditor issued a demand notice on 18.09.2018. The Corporate Debtor, in its email dated 25.09.2018, claimed that the goods were not unloaded at its site and requested the Operational Creditor to take back the distillation

…

## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the I&B Code is …

**Ratio:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP against a

…

**Reasoning:** The NCLT found that the application was complete and filed under proper form within

…

**Interpretation:** Section 9 of the I&B Code sets out the requirements for an operational

…

**Application:** The NCLT applied the provisions of Section 9 of the I&B Code to the facts

…

## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** M/s. Rahul…
- **Respondents:** M/s. Ferrox…

## Timeline

- **2018-01-03 — Purchase Ord…**: Purchase Order issued by Corporate…
- **2018-04-04 — Invoice…**: Invoice raised by Operational…

## 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/ferrox-chemicals-private-limited-cp-ib-no-4633-nclt-mb-2018-d496a913