# 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-04678. 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-04678
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rajat-ispat-pvt-ltd-cp-ib-no-1551-kb-2018-c4b7a43e

## 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 application was based on the claim that Rajat Ispat Pvt. Ltd. had defaulted on payment of an operational debt. Bhagwati Steels Pvt. Ltd. claimed a principal sum of Rs. 9,41,343/- along with interest of Rs. 2,53,776/-, calculated at 24% p.a., was due from Rajat Ispat Pvt. Ltd. for the supply of sponge iron. Despite repeated demands, Rajat Ispat Pvt. Ltd. failed to pay the outstanding amount.

## Facts

Bhagwati Steels Pvt. Ltd., the 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., the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor owed a principal sum of Rs. 9,41,343/- along with interest of Rs. 2,53,776/-, totaling Rs. 11,95,119/-, for unpaid invoices related to the supply of sponge iron. The 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 the outstanding principal amount. The Operational Creditor issued a demand

…

## 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, specifies the requirements for an

…

**Reasoning:** The court reasoned that the Operational Creditor had provided sufficient evidence,

…

**Interpretation:** Section 9 is interpreted to mean that if an operational creditor can

…

**Application:** The court applied this interpretation to the facts of the case, finding that

…

## Parties

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

## Timeline

- **2016-04-14 — Invoice Perio…**: Invoices were raised…
- **2016-11-17 — Invoice Per…**: Invoices were raised…

## 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/rajat-ispat-pvt-ltd-cp-ib-no-1551-kb-2018-c4b7a43e