# In the matter of Phoenix Aluminium Products Private Limited C.P. No.2663-I&BP-2019

> NCLT judgment dated 2019-11-13. Citation: TCN-2019-NCLT-00616. SKM Steels Limited filed a Company Petition seeking to initiate the Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 13 Nov 2019
- **Citation:** TCN-2019-NCLT-00616
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/phoenix-aluminium-products-private-limited-cp-no2663-ibp-2019-5dbde82e

## Summary

### Background

SKM Steels Limited filed a Company Petition seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Phoenix Aluminium Products Private Limited, alleging default in payment. The Corporate Debtor had approached the Petitioner for the purchase of HRPO Coils and Sheet from 21.03.2015 to 17.10.2015, for which invoices were raised amounting to Rs. 30,54,791/-. A prior settlement agreement in CP No. 430 of 2018 was breached when post-dated cheques issued by the Corporate Debtor bounced.

## Facts

SKM Steels Limited (Petitioner) filed a petition against Phoenix Aluminium Products Private Limited (Corporate Debtor) under Sections 8 & 9 of the IBC, 2016, alleging a default of Rs. 42,70,370/- inclusive of interest at 24% per annum. The Corporate Debtor had approached the Petitioner for the purchase of HRPO Coils and Sheet between 21.03.2015 and 17.10.2015, resulting in invoices totaling Rs. 30,54,791/-. In a prior case (CP No. 430 of 2018), the Corporate Debtor agreed to settle the dues, and a settlement agreement was filed on 16.10.2019. However, the Corporate Debtor breached the settlement agreement by issuing 16 post-dated cheques that were dishonored. The Petitioner issued a Demand Notice on 03.04.2019, but the Corporate Debtor failed to repay the dues or

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is in compliance with the provisions of …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) outlines the procedure for initiating CIRP by an

…

**Reasoning:** The Bench was satisfied that the petition filed by the Operational Creditor complied with

…

**Interpretation:** Section 8 & 9 of the IBC, 2016, specifies the requirements for an

…

**Application:** The court examined the petition and found that the Operational Creditor had

…

## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** SKM Steels…
- **Respondents:** Phoenix Aluminium…

## Timeline

- **2015-03-21 — Start of Tran…**: Corporate Debtor approached the Petitioner…
- **2015-10-17 — End of Trans…**: Period until which the Corporate Debtor purchased HRPO Coils and Sheet from the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/phoenix-aluminium-products-private-limited-cp-no2663-ibp-2019-5dbde82e