# In the matter of Jaycon Infrastructure Limited CP (IB) No.218-Chd-Chd-2018

> NCLT judgment dated 2019-10-07. Citation: TCN-2019-NCLT-01080. Gangotri Steel Syndicate, the operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 7 Oct 2019
- **Citation:** TCN-2019-NCLT-01080
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jaycon-infrastructure-limited-cp-ib-no218-chd-chd-2018-2acaa57a

## Summary

### Background

Gangotri Steel Syndicate, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Jaycon Infrastructure Limited, the corporate debtor, due to unpaid operational debt. The operational creditor claimed that the corporate debtor purchased steel from them, for which invoices were raised, but payments were not made. The corporate debtor initially made some payments but later defaulted. The NCLT initially disposed of the petition after the corporate debtor tendered a cheque, but the cheque was dishonored, leading to the revival of the petition.

## Facts

Gangotri Steel Syndicate, an operational creditor, filed a petition against Jaycon Infrastructure Limited, a corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. Gangotri Steel Syndicate claimed that Jaycon Infrastructure Limited purchased steel from them based on agreed terms, and invoices were raised. Four invoices dated 03.12.2015 and two invoices dated 07.12.2015 were raised. Three cheques dated 10.04.2017 for ₹20 Lac each and one cheque for ₹16,46,115/- were issued by the corporate debtor but later replaced with 14 cheques of ₹5 Lac each and one cheque of ₹6,46,115/-. These cheques were dishonored, leading to the issuance of notices under Section 138 of the Negotiable Instruments Act, 1881. A demand notice was sent on 10.11.2017, claiming

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** The Adjudicating Authority must admit the application under Section 9 if the application

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**Reasoning:** The NCLT reasoned that the corporate debtor admitted its liability and default by

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**Interpretation:** Section 9 of the IBC provides the procedure for initiating the Corporate

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**Application:** In this case, the corporate debtor's admission of liability and the subsequent

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Gangotri Steel…
- **Respondents:** Jaycon Infrastruct…; M/s Jaycon…

## Timeline

- **2015-12-03 — Invoices…**: Four invoices were raised by the…
- **2015-12-07 — Invoices…**: Two invoices were raised by the…

## 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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