# In the matter of Morpheus Developers Private Ltd. IB-363(ND)-2018

> NCLT judgment dated 2018-06-11. Citation: TCN-2018-NCLT-01297. The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Jun 2018
- **Citation:** TCN-2018-NCLT-01297
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/morpheus-developers-private-ltd-ib-363nd-2018-614ec6bb

## Summary

### Background

The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by an Operational Creditor, Gagan Ferrotech Ltd., against Morpheus Developers Private Ltd., the Corporate Debtor. The petition seeks initiation of the Corporate Insolvency Resolution Process (CIRP) due to the Corporate Debtor's inability to liquidate its debt. The Corporate Debtor had placed a purchase order for TMT steel bars, with payment terms of 45 to 50 days after supply. The Operational Creditor supplied goods on 30.03.2016 and 01.04.2016, raising invoices for Rs. 9,20,204/- and Rs. 10,15,952/- respectively.

## Facts

Gagan Ferrotech Ltd. (Operational Creditor) supplied TMT steel bars to Morpheus Developers Private Ltd. (Corporate Debtor) based on a purchase order. The payment was to be made within 45-50 days of supply. Goods were supplied on 30.03.2016 and 01.04.2016, with invoices totaling Rs. 19,36,156/- (Rs. 9,20,204/- and Rs. 10,15,952/-). The Corporate Debtor made a partial payment of Rs. 5,00,000/- on 07.10.2016. Two cheques dated 10th & 12th July, 2017, for Rs. 6,13,000/- and Rs. 6 lakhs respectively, were issued but dishonored. The outstanding balance was Rs. 14,36,156/-, which the Corporate Debtor confirmed. A demand notice was issued on 15.11.2017 under Section 8 of the IBC, but no reply was received. The Corporate Debtor did not raise any dispute regarding the

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is maintainable under Section 9 of the …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The court observed that the Operational Creditor had supplied goods to the Corporate

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts, noting that the Operational Creditor

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Gagan Ferrotech…
- **Respondents:** Morpheus Developer…

## Timeline

- **2016-03-30 — Goods Sup…**: Operational Creditor supplied goods to Corporate Debtor; invoice raised for Rs.…
- **2016-04-01 — Goods Sup…**: Operational Creditor supplied goods to Corporate Debtor; invoice raised for Rs.…

## 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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