# In the matter of SAL Steel Ltd. CP (IB) No. 94-9-NCLT-2017

> NCLT judgment dated 2017-09-06. Citation: TCN-2017-NCLT-00459. Besto Tradelink Pvt. Ltd., an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 6 Sept 2017
- **Citation:** TCN-2017-NCLT-00459
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sal-steel-ltd-cp-ib-no-94-9-nclt-2017-7f344f65

## Summary

### Background

Besto Tradelink Pvt. Ltd., an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against SAL Steel Ltd., the corporate debtor. The application was based on an operational debt arising from the supply of iron ore lumps by Besto Tradelink to SAL Steel. The applicant claimed that despite a demand notice, SAL Steel failed to pay the outstanding amount of Rs. 3,84,760/-.

## Facts

Besto Tradelink Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against SAL Steel Ltd. (Corporate Debtor). Besto Tradelink supplied Iron Ore Lumps to SAL Steel under Invoice No. 2014-14/035 dated 2nd October, 2014, with a value of Rs. 30,30,106/-. The duty payable on the invoice was Rs. 1,04,348.20. As per the ledger account, the amount due from SAL Steel was Rs. 3,84,760/-. Besto Tradelink issued a Demand Notice in Form-3 on 17.7.2017, which was received by SAL Steel on 18.7.2017. SAL Steel did not make the payment. The application was filed on 11th August, 2017. The Adjudicating Authority directed the applicant to comply with Section 9(b) and 9(c) of the Code and to file complete fresh written

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## Issues and analysis

### Issue 1: Whether the application filed by Besto Tradelink Pvt. Ltd. under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency

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**Reasoning:** The Adjudicating Authority examined the documents filed by the applicant, including

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**Interpretation:** Section 9 requires the operational creditor to demonstrate that a debt is owed

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**Application:** In this case, the applicant, Besto Tradelink, provided sufficient evidence to

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Besto Tradelink…
- **Respondents:** SAL Steel…

## Timeline

- **2014-10-02 — Invoice…**: Besto Tradelink supplied Iron Ore Lumps to…
- **2017-07-17 — Demand Notice…**: Besto Tradelink issued a Demand…

## 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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