# In the matter of Karthik Alloys Limited CP (IB) 2119-MB-C-IV-2019

> NCLT judgment dated 2019-12-17. Citation: TCN-2019-NCLT-00123. The case involves an application filed by Vedanth.Com Worldwide Limited, the Operational…

- **Court:** NCLT
- **Order date:** 17 Dec 2019
- **Citation:** TCN-2019-NCLT-00123
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/karthik-alloys-limited-cp-ib-2119-mb-c-iv-2019-ee5e1868

## Summary

### Background

The case involves an application filed by Vedanth.Com Worldwide Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Karthik Alloys Limited, the Corporate Debtor, for default in payment of dues. The Operational Creditor claimed that the Corporate Debtor failed to make payment of Rs. 34,11,111/- as principal along with interest at 18% P.A. on the outstanding amount. The Corporate Debtor contested the claim, citing delays and inferior quality of raw materials supplied, and raised a counter-claim.

## Facts

Vedanth.Com Worldwide Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Karthik Alloys Limited (Corporate Debtor) for non-payment of dues amounting to Rs. 34,11,111/- as principal, along with interest at 18% P.A. The Operational Creditor claimed that the Corporate Debtor placed orders for fixed carbon and moisture of various quantities, totaling Rs. 75,00,000/-, as per three purchase orders. Invoices were raised between 21.06.2018 and 04.09.2018. The Corporate Debtor issued certain debit notes from 23.06.2018 to 24.10.2018. The Corporate Debtor forwarded a copy of the ledger account to the Operational Creditor on 06.03.2019, which was verified and accepted by the Operational Creditor. The Operational

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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:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4(1) of the

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**Reasoning:** The Adjudicating Authority observed that the application made by the Operational Creditor

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**Interpretation:** Section 9 of IBC outlines the process and requirements for an operational

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**Application:** The Adjudicating Authority found that the Operational Creditor's application

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## Parties

- **Judges:** Rajasekha…; Ravikumar…; +1 more
- **Appellants:** Vedanth.com…
- **Respondents:** Karthik Alloys…

## Timeline

- **1992-12-30 — Incorporation of…**: Karthik Alloys Limited incorporated…
- **2018-06-21 — Invoices…**: Invoices were raised on the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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