# In the matter of Salagram Power and Steel Private Limited C.P. (IB) No. 182-KB-2019

> NCLT judgment dated 2020-01-22. Citation: TCN-2020-NCLT-02220. The case involves an application filed by Aanchal Ispat Limited (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 22 Jan 2020
- **Citation:** TCN-2020-NCLT-02220
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/salagram-power-and-steel-private-limited-cp-ib-no-182-kb-2019-5e06b575

## Summary

### Background

The case involves an application filed by Aanchal Ispat Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Salagram Power and Steel Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for outstanding debts amounting to Rs. 2,51,55,999 plus interest at 24% per annum.

## Facts

Aanchal Ispat Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Salagram Power and Steel Private Limited, the Corporate Debtor, due to outstanding debt. The Operational Creditor is a manufacturer and trader of iron and steel products. In July 2017, negotiations took place between the parties for the supply of goods. The Operational Creditor supplied goods from November 2017 to December 2017, which were received and acknowledged by the Corporate Debtor. The total supplies were worth approximately Rs. 2,51,00,000. The Corporate Debtor also filed GST Returns showing the purchase of such goods. The Operational Creditor issued a demand letter on May 25, 2018, to pay the amount along

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court considered the submissions and evidence presented by both parties. It noted

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP

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**Application:** The court applied Section 9 to the facts of the case and found that the

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Aanchal Ispat…
- **Respondents:** Salagram Power…

## Timeline

- **2017-07-01 — Negotiations for Supply…**: Negotiations took place between the Operational Creditor and the Corporate Debtor for the…
- **2017-11-01 — Supply of…**: The Operational Creditor supplied goods to the Corporate Debtor from November 2017 to…

## 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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