# In the matter of Nova Steels (India) Limited CP {lB} No. 163-CTB-2019

> NCLT judgment dated 2020-02-20. Citation: TCN-2020-NCLT-01854. The case involves an application under Section 8 and 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Feb 2020
- **Citation:** TCN-2020-NCLT-01854
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nova-steels-india-limited-cp-lb-no-163-ctb-2019-4a41c4e0

## Summary

### Background

The case involves an application under Section 8 and 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. M/S. Pohoja Print Solutions Private Limited, the operational creditor, filed the application against M/S. Nova Steels (India) Limited, the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed that the corporate debtor defaulted on payments for printing of an Annual Report.

## Facts

M/S. Pohoja Print Solutions Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/S. Nova Steels (India) Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that they entered into an agreement with the Corporate Debtor for printing of an Annual Report. A bill was raised on 2014-12-28 for Rs. 8,86,368/-. The Operational Creditor issued demand notices on 2014-12-28 and 2015-03-03, with a payment demand notice dated 2015-04-10. The Corporate Debtor admitted the liability but stated inability to settle the bill. The Operational Creditor issued a legal notice under Section 433 of the Companies Act, 1956 dated 2015-07-16, and

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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:** The ratio is based on the provisions of Section 9 of the Insolvency and Bankruptcy Code,

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**Reasoning:** The court reasoned that the Corporate Debtor admitted the liability but stated its

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if the operational creditor

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**Application:** The court applied the ratio to the facts by noting that the operational

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## Parties

- **Judges:** Sucharit…; Satya Ranjan…
- **Appellants:** M/S. POHOJA PRINT…
- **Respondents:** M/S. NOVA STEELS…
- **Advocates:** Ramesh Ag…; Ruchi Raj…; +2 more

## Timeline

- **2014-12-28 — Bill Rai…**: Bill raised by the Operational Creditor for printing of an Annual Report for a sum of Rs.…
- **2014-12-28 — Demand Notice…**: Operational Creditor issued…

## 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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