# In the matter of Rajdeep Steel Products Pvt. Ltd. C.P. (IB)-90-(MB)-2018

> NCLT judgment dated 2019-02-11. Citation: TCN-2019-NCLT-04920. Manhar Trading Corporation filed a petition against Rajdeep Steel Products Pvt. Ltd. under…

- **Court:** NCLT
- **Order date:** 11 Feb 2019
- **Citation:** TCN-2019-NCLT-04920
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rajdeep-steel-products-pvt-ltd-cp-ib-90-mb-2018-a2415172

## Summary

### Background

Manhar Trading Corporation filed a petition against Rajdeep Steel Products Pvt. Ltd. under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking to recover an outstanding operational debt of ₹5,57,723. The debt comprised ₹3,33,905 in principal and ₹2,23,818 in interest, calculated up to September 30, 2017, with an additional interest of 24% per annum thereafter. The petitioner claimed to have supplied 'Seamless Boiler Tube' to the respondent. The respondent allegedly failed to make payments despite repeated reminders, citing financial difficulties.

## Facts

Manhar Trading Corporation, an operational creditor, claimed that Rajdeep Steel Products Pvt. Ltd. owed them ₹5,57,723, including principal and interest, for the supply of 'Seamless Boiler Tube'. The goods were delivered to the Corporate Debtor at Kalamboli. Invoices were raised between November and December 2014. The Corporate Debtor allegedly raised frivolous objections regarding the quality of materials, which the Operational Creditor addressed by replacing the goods. Despite reminders, the Corporate Debtor failed to make payments, citing financial difficulties. The Operational Creditor issued a notice under Section 271 of the Companies Act, 1957 and a demand notice under Section 8(1) of the IBC. The Corporate Debtor did not respond to the notices or attend the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** Section 3(12) of the Insolvency & Bankruptcy Code defines 'default' as non-payment of

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**Reasoning:** The court observed that the Corporate Debtor failed to make payments for the goods

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**Interpretation:** The definition of 'default' under Section 3(12) of the IBC is interpreted to

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**Application:** In this case, the Corporate Debtor's failure to pay the outstanding amount to

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Manhar Trading…
- **Respondents:** Rajdeep Steel…
- **Advocates:** Minal N.…

## Timeline

- **2014-11-28 — Invoice…**: Invoice No. 037693…
- **2014-12-05 — Invoice…**: Invoice No. 037735…

## 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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