# In the matter of Laxmipati Balaji Infra Private Limited C.P. (I.B) No. 261-9-NCLT-AHM-2019

> NCLT judgment dated 2020-05-28. Citation: TCN-2020-NCLT-01305. The case involves an application filed by Shree Nakoda Ispat Limited, an operational creditor,…

- **Court:** NCLT
- **Order date:** 28 May 2020
- **Citation:** TCN-2020-NCLT-01305
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/laxmipati-balaji-infra-private-limited-cp-ib-no-261-9-nclt-ahm-2019-652ac4ac

## Summary

### Background

The case involves an application filed by Shree Nakoda Ispat Limited, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Laxmipati Balaji Infra Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on a payment of INR 43,26,641.00 for the supply of TMT bars. The application was filed due to the corporate debtor's failure to make payments despite repeated reminders and dishonoring of cheques issued for part payment.

## Facts

Shree Nakoda Ispat Limited, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Laxmipati Balaji Infra Private Limited, the corporate debtor. The operational creditor is a registered company engaged in the business of TMT bars. The corporate debtor was incorporated on 26.03.2015. The corporate debtor approached the operational creditor to purchase TMT bars of various sizes, and purchase orders were placed on 13.06.2017. The operational creditor supplied materials worth INR 43,26,641.00 to the corporate debtor between 21.06.2017 and 07.07.2017. The purchase orders specified a payment term of 45 days from the date of supply. The corporate debtor failed to make payments despite repeated

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor is maintainable under Section 9 of the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The Adjudicating Authority considered the material and papers filed by the petitioner and

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**Interpretation:** Section 9 provides the framework for operational creditors to initiate CIRP,

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**Application:** The application was found to be maintainable as the operational creditor

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Shree Nakoda…
- **Respondents:** Laxmipati Balaji…
- **Advocates:** Jainish…

## Timeline

- **2017-06-21 — Supply of Ma…**: The Applicant supplied materials worth of Rs. 43,26,641.00 to the Respondent Company from…
- **2017-07-07 — Date of D…**: The date of default is…

## 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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