# In the matter of Sewa Steels Private Limited CP No. (IB)-02-9-JPR-2022

> Read the full IBC case summary for In the matter of Sewa Steels Private Limited CP No. (IB)-02-9-JPR-2022. NCLT judgment dated 2022-05-25. Citation:…

- **Court:** NCLT
- **Order date:** 25 May 2022
- **Citation:** TCN-2022-NCLT-04767
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sewa-steels-private-limited-cp-no-ib-02-9-jpr-2022-20cfa158

## Summary

### Background

The operational creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor for non-payment of operational dues.

## Facts

Mr. Pawan Garg, proprietor of M/s V.R. Trading Company, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The application sought the initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s Sewa Steels Pvt. Ltd., the corporate debtor, for an alleged default in payment of operational dues.

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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:** An application under Section 9 of the IBC for initiating CIRP is admissible if there is a…

**Reasoning:** The Adjudicating Authority found that the corporate debtor failed to make payment of the…

**Interpretation:** The court interpreted Section 9 of the IBC to mean that once a default in…

**Application:** Given the corporate debtor's failure to pay the operational debt and the…

## Parties

- **Judges:** Deep Chandr…; RAGHU N…
- **Advocates:** A. K. B…; Surendra…

## Timeline

- **April 17, 1990 — Incorporation of…**: M/s Sewa Steel Pvt. Ltd. was…
- **March 4, 2019 — Start of Continuous…**: The default in payment by…

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