# In the matter of Raghuveer Urban Construction Company Pvt. Ltd. CP (IB)-1766-(MB)-2017

> NCLT judgment dated 2018-06-06. Citation: TCN-2018-NCLT-01325. The case involves an application filed by Maheshwari Industries, an operational creditor,…

- **Court:** NCLT
- **Order date:** 6 Jun 2018
- **Citation:** TCN-2018-NCLT-01325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raghuveer-urban-construction-company-pvt-ltd-cp-ib-1766-mb-2017-0bcf9399

## Summary

### Background

The case involves an application filed by Maheshwari Industries, an operational creditor, against Raghuveer Urban Construction Company Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016. The operational creditor claimed an outstanding operational debt of ₹1,65,88,542/-, comprising principal and interest, for the supply of G.I. Pipes based on purchase orders issued by the corporate debtor. The corporate debtor allegedly made some payments but several invoices remained outstanding. The operational creditor issued a demand notice, but the corporate debtor disputed the claim, alleging shortcomings in the quality of the supplied pipes and claiming that some goods were returned.

## Facts

Maheshwari Industries (Operational Creditor) supplied G.I. Pipes to Raghuveer Urban Construction Company Pvt. Ltd. (Corporate Debtor) based on purchase orders. The Operational Creditor raised invoices for the supplied goods. The Corporate Debtor made some payments, but an amount of ₹78,24,157/- (principal) remained outstanding. The Operational Creditor claimed an additional ₹87,64,385/- as interest. The Operational Creditor issued a demand notice on 10.11.2017, which was received by the Corporate Debtor on 14.11.2017. The Corporate Debtor replied on 23.11.2017, alleging that the supplied pipes were of inferior quality and that some goods were returned. The Operational Creditor filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016. The

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in …

**Ratio:** The principle is that if a debt is due and payable, and the debtor fails to make payment,

…

**Reasoning:** The court considered the invoices, demand notice, and the Corporate Debtor's failure to

…

**Interpretation:** The term 'default' under the IBC is interpreted as a failure to pay a debt when

…

**Application:** The Corporate Debtor failed to pay the outstanding amount as per the invoices,

…

## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Maheshwari…
- **Respondents:** Raghuveer Urban…

## Timeline

- **2017-12-19 — Application…**: M/s. Maheshwari Industries filed…
- **2017-10-31 — Outstandin…**: Outstanding Operational Debt of ₹1,65,88,542/- (Principal Amount ₹78,24,157/- + Interest…

## 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)

---

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/raghuveer-urban-construction-company-pvt-ltd-cp-ib-1766-mb-2017-0bcf9399