# In the matter of North Bengal Iron and Steel Private Limited CP (IB) No. 182-KB-2018

> NCLT judgment dated 2018-06-14. Citation: TCN-2018-NCLT-01262. The case pertains to an application filed by Modi Hitech India Limited, the Operational…

- **Court:** NCLT
- **Order date:** 14 Jun 2018
- **Citation:** TCN-2018-NCLT-01262
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/north-bengal-iron-and-steel-private-limited-cp-ib-no-182-kb-2018-5636fb5e

## Summary

### Background

The case pertains to an application filed by Modi Hitech India Limited, the Operational Creditor, against North Bengal Iron and Steel Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to the Corporate Debtor's failure to pay outstanding dues.

## Facts

Modi Hitech India Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against North Bengal Iron and Steel Private Limited, the Corporate Debtor, due to non-payment of dues. The Operational Creditor is in the business of manufacturing and selling welding consumables and had supplied goods to the Corporate Debtor based on purchase orders. As of 05.02.2015, the total outstanding amount was Rs. 7,70,196/-, including a principal amount of Rs. 4,47,789/- and interest of Rs. 3,22,407/- as of 18.01.2018. The Corporate Debtor had approached the Operational Creditor on 14.01.2015 for the supply of goods, and a purchase order was placed on 05.02.2015. The goods were supplied, and invoices were raised, which the

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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, allows an operational creditor to

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**Reasoning:** The court noted that the Operational Creditor had filed the application under Section 9

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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 of the case, finding that the

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Appellants:** Modi Hitech India…
- **Respondents:** North Bengal Iron…

## Timeline

- **2015-01-14 — Corporate Debtor…**: The Corporate Debtor approached the…
- **2015-02-05 — Purchase Orde…**: A purchase order was placed by the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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