# In the matter of RGTL Industries Limited IB-431-(ND)-2019

> NCLT judgment dated 2019-04-10. Citation: TCN-2019-NCLT-03974. The Operational Creditor (OC), M/s Shree Balaji Refractories Co., filed a petition under…

- **Court:** NCLT
- **Order date:** 10 Apr 2019
- **Citation:** TCN-2019-NCLT-03974
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rgtl-industries-limited-ib-431-nd-2019-b9de7c5b

## Summary

### Background

The Operational Creditor (OC), M/s Shree Balaji Refractories Co., filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016) against the Corporate Debtor (CD), RGTL Industries Ltd., for an operational debt of Rs. 16,73,518/-. The debt arose from the supply of materials by the OC to the CD between 1.8.2018 and 29.11.2018, for which 10 invoices were raised. Payments were due within 30 days of the invoice dates. The CD failed to make payments, leading to a default. The OC issued a demand notice on 25.01.2019, which was served to the CD. The CD acknowledged its liability in a reply dated 27.1.2019, seeking more time to make payments. The OC then approached the Tribunal seeking initiation of Corporate Insolvency Resolution Process (CIRP).

## Facts

M/s Shree Balaji Refractories Co., the Operational Creditor (OC), filed a petition against RGTL Industries Ltd., the Corporate Debtor (CD), under Section 9 of the Insolvency and Bankruptcy Code, 2016. The OC claimed an operational debt of Rs. 16,73,518/- arising from the supply of materials, including fire clay, castable refractory, fire bricks, and ceramic fiber blanket, to the CD between August 1, 2018, and November 29, 2018. Ten invoices were raised, with payment due within 30 days of each invoice date. The CD failed to make the payments, resulting in a default. A demand notice was issued on January 25, 2019, and served to the CD, which acknowledged the debt on January 27, 2019, requesting more time to pay. The OC then filed a petition seeking initiation of CIRP.

…

## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9(5)(i) of the IBC, 2016 allows for the admission of an application/petition if

…

**Reasoning:** The Tribunal noted that the Corporate Debtor acknowledged its liability and sought time

…

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

…

**Application:** Based on the facts presented, including the Corporate Debtor's acknowledgement

…

## Parties

- **Judges:** R. VARADH…; DeepaKr…
- **Appellants:** M/s Shree Balaji…
- **Respondents:** RGTL Industries…

## Timeline

- **2018-08-01 — Invoice Perio…**: Start date of the period during which invoices…
- **2018-11-29 — Invoice Per…**: End date of the period during which invoices…

## 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/rgtl-industries-limited-ib-431-nd-2019-b9de7c5b