# In the matter of Rajat Ispat Pvt. Ltd. C.P. (IB) No. 1551-KB-2018

> NCLT judgment dated 2019-02-26. Citation: TCN-2019-NCLT-04672. Bhagwati Steels Pvt. Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 26 Feb 2019
- **Citation:** TCN-2019-NCLT-04672
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rajat-ispat-pvt-ltd-cp-ib-no-1551-kb-2018-b08f88f3

## Summary

### Background

Bhagwati Steels Pvt. Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Rajat Ispat Pvt. Ltd. The claim was based on an unpaid operational debt of Rs. 9,41,343/- along with interest of Rs. 2,53,776/-, arising from the supply of sponge iron. The Operational Creditor contended that the Corporate Debtor had failed to make payments despite repeated requests and reminders.

## Facts

Bhagwati Steels Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Rajat Ispat Pvt. Ltd. (Corporate Debtor). The claim was for an unpaid operational debt of Rs. 9,41,343/- plus interest of Rs. 2,53,776/-, totaling Rs. 11,95,119/-, arising from the supply of sponge iron. The Operational Creditor had been supplying sponge iron to the Corporate Debtor, and invoices were raised between 14.04.2016 and 17.11.2016, amounting to Rs. 82,35,751/-, which the Corporate Debtor accepted without objection. The Corporate Debtor made part payments, with the last payment on 09.06.2017, leaving an outstanding amount of Rs. 9,41,343/-. The Corporate Debtor did

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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(3) of the Insolvency and Bankruptcy Code, 2016, specifies the requirements for

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**Reasoning:** The court observed that the Operational Creditor had furnished all the necessary

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**Interpretation:** Section 9(3) of the I&B Code requires the operational creditor to provide

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**Application:** In this case, the Operational Creditor provided copies of invoices, ledger

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## Parties

- **Judges:** Jinan…
- **Appellants:** Bhagwati Steels…
- **Respondents:** Rajat Ispat Pvt.…

## Timeline

- **2016-04-14 — Invoices…**: Invoices were raised between 14.04.2016 to…
- **2017-06-09 — Last Pay…**: The last payment made against the invoices was on 09.06.2017, leaving an outstanding…

## 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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