# In the matter of Khan & Co Infra Projects Pvt. Ltd. C.P. No.4656-IBC-MB-2019

> NCLT judgment dated 2021-11-08. Citation: TCN-2021-NCLT-00587. Ultratech Cement Limited, the Operational Creditor, filed a Company Petition seeking to…

- **Court:** NCLT
- **Order date:** 8 Nov 2021
- **Citation:** TCN-2021-NCLT-00587
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/khan-co-infra-projects-pvt-ltd-cp-no4656-ibc-mb-2019-1539ea25

## Summary

### Background

Ultratech Cement Limited, the Operational Creditor, filed a Company Petition seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Khan & Co Infra Projects Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The claim arose from unpaid invoices for materials supplied by the Operational Creditor to the Corporate Debtor. Initially, the parties had settled the matter, leading to the withdrawal of an earlier Company Petition (3326/2018). As part of the settlement, the Corporate Debtor issued 17 post-dated cheques. However, most of these cheques were dishonored due to insufficient funds. The Operational Creditor then issued a demand notice, which the Corporate Debtor failed to respond to or comply

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## Facts

Ultratech Cement Limited (Operational Creditor) supplied construction materials to Khan & Co Infra Projects Private Limited (Corporate Debtor) based on the latter's requests and orders. The Corporate Debtor received the materials without raising any disputes. The Operational Creditor issued invoices for the supplied materials. As of 2019-08-10, the Corporate Debtor failed to pay Rs. 17,12,182/- against the invoices. Despite repeated requests, the Corporate Debtor did not make the payments. The parties initially settled the matter, leading to the withdrawal of a previous Company Petition. As part of the settlement, the Corporate Debtor agreed to pay Rs. 17,12,182/- in 17 installments and issued post-dated cheques. The Corporate Debtor honored the first three

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## Issues and analysis

### Issue 1: Whether the Operational Creditor successfully demonstrated the existence of debt and default on the …

**Ratio:** The existence of debt and default is a prerequisite for the initiation of CIRP under

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**Reasoning:** The court relied on the invoices, dishonored cheques, and the demand notice issued by the

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**Interpretation:** The court interpreted the evidence presented by the Operational Creditor as

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

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Ultratech Cement…
- **Respondents:** Khan & Co Infra…
- **Advocates:** Sahil Ma…

## Timeline

- **2018-01-01 — Earlier Company…**: Company Petition 3326/2018…
- **2019-03-01 — Disposal of Earlier…**: Hon'ble NCLT disposed of Company Petition…

## 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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