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

> NCLT judgment dated 2019-04-10. Citation: TCN-2019-NCLT-03967. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 10 Apr 2019
- **Citation:** TCN-2019-NCLT-03967
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rgtl-industries-limited-ib-431-nd-2019-bd1df835

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Shree Balaji Refractories Co., an operational creditor (OC), against RGTL Industries Limited, the corporate debtor (CD). The OC claimed an operational debt of Rs. 16,73,518/- arising from the supply of materials between 1.8.2018 and 29.11.2018. The OC alleged that the CD defaulted on payments for 10 invoices, which were due within 30 days of the invoice dates. A demand notice was issued on 25.01.2019, and the CD acknowledged its liability, seeking more time to pay.

## Facts

Shree Balaji Refractories Co., an operational creditor, filed a petition against RGTL Industries Limited, a corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed a debt of Rs. 16,73,518/- arising from the supply of fire clay, castable refractory, fire bricks, and ceramic fiber blanket between August 1, 2018, and November 29, 2018. Ten invoices were raised, with payments due within 30 days of the invoice date. The corporate debtor failed to make payments, leading to a default. A demand notice was issued on January 25, 2019, and served to the corporate debtor, who acknowledged the debt and requested more time. The corporate debtor's financial statements revealed losses and a negative net worth. The corporate

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## Issues and analysis

### Issue 1: Whether the application/petition under Section …

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

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**Reasoning:** The tribunal considered the invoices, demand notice, and the corporate debtor's admission

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

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**Application:** The tribunal found that the operational creditor had established the existence

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## Parties

- **Judges:** R. VARADH…; Deepa Kr…; +1 more
- **Appellants:** Shree Balaji…
- **Respondents:** RGTL Industries…

## Timeline

- **2004-11-10 — Incorporation of…**: RGTL Industries Limited…
- **2018-08-01 — Invoice Perio…**: Start date of the period during which invoices…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(4) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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