# In the matter of Sequal Alloys and Wires Private Limited (IB)-375-(ND)-2017

> NCLT judgment dated 2017-11-15. Citation: TCN-2017-NCLT-00194. M/s Vedanta Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Nov 2017
- **Citation:** TCN-2017-NCLT-00194
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sequal-alloys-and-wires-private-limited-ib-375-nd-2017-afd0d544

## Summary

### Background

M/s Vedanta Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, alleging that M/s Sequal Alloys and Wires Private Limited, the Corporate Debtor, failed to pay outstanding dues for the supply of LME 'A' Grade Copper Cathodes and Cast Copper Wire Rods. The Corporate Debtor had placed an order for the supply of these products after accepting the general terms and conditions. The goods were sent against 3 Letters of Credit (LCs) drawn on Indian Overseas Bank, to be negotiated within 120 days. The Operational Creditor supplied the material, but the LCs could not be encashed due to technicalities, and they lapsed. The Operational Creditor requested the Corporate Debtor to pay the outstanding amount of Rs. 32,67,395/-, but no further steps

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## Facts

M/s Vedanta Limited (Operational Creditor) supplied LME 'A' Grade Copper Cathodes and Cast Copper Wire Rods to M/s Sequal Alloys and Wires Private Limited (Corporate Debtor) based on purchase orders. The Corporate Debtor accepted the general terms and conditions for the supply. The goods were sent against 3 Letters of Credit (LCs) drawn on Indian Overseas Bank, with a negotiation period of 120 days. The Operational Creditor presented the LCs for negotiation, initially through State Bank of India, Delhi Branch, after an amendment to allow negotiation through any bank (previously restricted to HDFC Bank). The State Bank of India did not discount the LCs, and they lapsed due to technicalities. The outstanding amount was Rs. 32,67,395/-, including interest as per the

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## Issues and analysis

### Issue 1: Whether the present petition has been filed in the required format and instituted by a duly …

**Ratio:** The petition must be filed in the required format and by a duly authorized person as per

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**Reasoning:** The court noted that the present petition has been filed in the required format and has

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**Interpretation:** This ensures that the legal process is initiated correctly and by someone with

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**Application:** The court confirmed that the

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## Parties

- **Judges:** Ina Mal…; S. K. MOH…
- **Appellants:** M/S VEDANTA…
- **Respondents:** M/s Sequal Alloys…

## Timeline

- **2016-06-10 — Purchase Ord…**: Purchase order for 2.5 MT Copper Cathode…
- **2017-11-15 — Order Del…**: Order was delivered on…

## 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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