# In the matter of Safri Tradelink Private Limited C.P. No. 1185-I&BP-2019

> NCLT judgment dated 2019-09-11. Citation: TCN-2019-NCLT-01501. Shreeji Steel Tubes filed a petition to initiate the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 11 Sept 2019
- **Citation:** TCN-2019-NCLT-01501
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/safri-tradelink-private-limited-cp-no-1185-ibp-2019-8f40b612

## Summary

### Background

Shreeji Steel Tubes filed a petition to initiate the Corporate Insolvency Resolution Process (CIRP) against Safri Tradelink Private Limited, alleging a default on 12.12.2018 in payment of Rs. 3,60,450/-, including interest. The petitioner supplied MS pipes to the corporate debtor based on orders dated 15.06.2018 and raised an invoice for Rs. 4,13,548/-. A cheque issued by the corporate debtor was dishonored. Despite a demand notice, no payment was made, and no notice of dispute was given by the corporate debtor.

## Facts

Shreeji Steel Tubes (Petitioner) filed a petition against Safri Tradelink Private Limited (Corporate Debtor) to initiate CIRP due to a default in payment. On 15.06.2018, the Petitioner supplied MS pipes to the Corporate Debtor and raised an invoice for Rs. 4,13,548/-. On 11.09.2018, the Corporate Debtor issued a cheque for Rs. 4,13,548/-, which was dishonored due to 'Funds Insufficient'. On 14.11.2018, the Corporate Debtor acknowledged the outstanding balance of Rs. 4,13,548/- and promised payment by 31.12.2018. Part payments of Rs. 50,000/- and Rs. 1,00,000/- were made on 01.12.2018 and 11.12.2018, respectively. On 22.12.2018, the Petitioner issued a demand notice for Rs. 3,60,450/- including interest @30% p.a. No reply was received from the Corporate Debtor, and no

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor is in compliance with the provisions of …

**Ratio:** Section 8 and 9 of the Insolvency & Bankruptcy Code (IBC) outline the procedure for

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**Reasoning:** The court found that the operational creditor had issued a demand notice, and the

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**Interpretation:** Sections 8 and 9 of the IBC are interpreted to ensure that operational

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**Application:** The court applied the provisions of Section 8 and 9 to the facts of the case,

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** Shreeji Steel…
- **Respondents:** Safri Tradelink…
- **Advocates:** Angad S…

## Timeline

- **2018-06-15 — Supply of M…**: The Petitioner supplied and delivered MS pipes to the Corporate Debtor and raised invoice…
- **2018-09-11 — Cheque I…**: The Corporate Debtor issued a cheque amounting to Rs. 4,13,548/- in favor of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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