# In the matter of Ramdas Ispat and Metals Pvt. Ltd. TCP No. 558(IB)-MB-2017

> NCLT judgment dated 2018-04-06. Citation: TCN-2018-NCLT-01589. The case involves a petition transferred from the Hon'ble High Court at Bombay Judicature.…

- **Court:** NCLT
- **Order date:** 6 Apr 2018
- **Citation:** TCN-2018-NCLT-01589
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ramdas-ispat-and-metals-pvt-ltd-tcp-no-558ib-mb-2017-ad435f2c

## Summary

### Background

The case involves a petition transferred from the Hon'ble High Court at Bombay Judicature. Initially, a Company Petition (L) No. CPL/196/15 was filed before the High Court on 2015-03-04 for winding up under sections 433(e) and 434 of the Companies Act, 1956, pertaining to a debt of ₹1,83,68,422/- (Principal) plus interest of ₹50,88,182/-, totaling ₹2,34,56,604/-. The petition was later transferred to the NCLT, and the Petitioner (Operational Creditor) submitted Form No.5 under Rule-6 of the Insolvency and Bankruptcy (Applications to Adjudicating Authority) Rules, 2016, on 2017-06-09 to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

## Facts

BMM Ispat Ltd. (Operational Creditor) supplied Sponge Iron lumps and Iron Ore Pellet to Ramdas Ispat and Metals Pvt. Ltd. (Corporate Debtor). The Corporate Debtor is dealing in Manufacture of MS Billets and allied products. A credit facility of 15 days was agreed upon for repayment. The Operational Creditor sold goods worth ₹8,49,34,549/- during the financial years 2012-13 and 2013-14, against which a payment of ₹6,91,19,295/- was made, leaving an unpaid balance of ₹1,58,15,254/- as on 2013-07-27. One of the Directors of the Corporate Debtor acknowledged the outstanding debt of ₹1.58 crores as on 2013-12-21 and requested time until April 2014 to settle the dues, but the debt remained unpaid. The Operational Creditor served a Demand Notice dated 2017-09-19, which was

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## Issues and analysis

### Issue 1: Whether the petition for initiation of Corporate Insolvency Resolution Process under Section 9 of …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 allows for the initiation of CIRP upon the

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**Reasoning:** The court considered the facts and circumstances, including the outstanding debt, the

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to initiate

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**Application:** The court applied the provisions of Section 9 to the facts of the case, finding

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** BMM Ispat…
- **Respondents:** Ramdas Ispat and…
- **Advocates:** Rajee…

## Timeline

- **2015-03-04 — Original Petit…**: Company Petition (L) No. CPL/196/15 filed…
- **2017-06-09 — Petition Transferred to…**: The petition was transferred to NCLT, and…

## 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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