# In the matter of Lahari Infra Projects (India) Private Limited CP (IB) No. 164-9-HDB-2020

> NCLT judgment dated 2021-12-03. Citation: TCN-2021-NCLT-00288. The case involves a Company Application filed by Arham Iron & Steel Industries (Operational…

- **Court:** NCLT
- **Order date:** 3 Dec 2021
- **Citation:** TCN-2021-NCLT-00288
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lahari-infra-projects-india-private-limited-cp-ib-no-164-9-hdb-2020-c5481a24

## Summary

### Background

The case involves a Company Application filed by Arham Iron & Steel Industries (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Lahari Infra Projects (India) Private Limited (Corporate Debtor). The Operational Creditor claims that the Corporate Debtor defaulted on payments for the supply of iron and steel.

## Facts

Arham Iron & Steel Industries (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Lahari Infra Projects (India) Private Limited (Corporate Debtor) for defaulting on payments for supplied iron and steel. The Operational Creditor claimed that it supplied TMT Rebar of various dimensions to the Corporate Debtor, with a principal amount of Rs. 73,79,129.20 and total interest amounts of Rs. 4,50,439.86, resulting in a total due of Rs. 79,10,648.23. The Operational Creditor issued a Demand Notice on 21.01.2020, which was delivered on 22.01.2020. The Corporate Debtor issued post-dated cheques, which were later dishonored. The Corporate Debtor claimed that the supplied material was of inferior quality and that

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## Issues and analysis

### Issue 1: Whether there exists an operational debt as defined …

**Ratio:** An operational debt is a claim in respect of the provision of goods or services,

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**Reasoning:** The court observed that the Operational Creditor supplied iron and steel to the Corporate

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**Interpretation:** The definition of 'operational debt' under the IBC is interpreted broadly to

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**Application:** In this case, the supply of iron and steel by the Operational Creditor to the

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## Parties

- **Judges:** DR.VENKATA…; BINOD KUMAR…
- **Appellants:** Arham Iron &…
- **Respondents:** Lahari Infra…

## Timeline

- **2020-01-21 — Demand Notice…**: The Operational Creditor issued a Demand Notice under Section 8 of the Insolvency and…
- **2020-01-22 — Demand Notice…**: The Demand Notice was delivered to 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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