# in the matter of Shilpi Cable Technologies Ltd. CP No. (IB) 64-PB-2017

> NCLT judgment dated 2017-05-24. Citation: TCN-2017-NCLT-00850. Macquarie Bank Limited, as assignee of S.V. Oversees Private Limited, filed an application…

- **Court:** NCLT
- **Order date:** 24 May 2017
- **Citation:** TCN-2017-NCLT-00850
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shilpi-cable-technologies-ltd-cp-no-ib-64-pb-2017-a0f68d7a

## Summary

### Background

Macquarie Bank Limited, as assignee of S.V. Oversees Private Limited, filed an application under Sections 8 and 9 of the Insolvency and Bankruptcy Code, 2016, against Shilpi Cable Technologies Limited, the Corporate Debtor, for defaulting on an operational debt of US Dollar 3,010,150.00. The debt originated from the supply of copper rods by S.V. Oversees Private Limited to Shilpi Cable Technologies Limited under a contract dated 18.01.2016. The Corporate Debtor made part payments, but a significant amount remained outstanding. Macquarie Bank, as the assignee, issued a demand notice on 08.03.2017, which the Corporate Debtor replied to on 20.03.2017, acknowledging the debt but requesting more time. The Corporate Debtor initiated arbitration proceedings against the

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## Facts

Macquarie Bank Limited, the 'Applicant', is the assignee of S.V. Oversees Private Limited, the 'Supplier'. The Supplier and Shilpi Cable Technologies Limited, the 'Corporate Debtor', entered into a contract on 18.01.2016 for the supply of copper rods. The Corporate Debtor agreed to purchase the invoiced quantity of copper rods from time to time against the purchase orders placed. The payment was to be made on demand by the Corporate Debtor upon presentation of a commercial invoice by the Operational Creditor. If the payment was not made within a period of 180 days then it was to become due with interest calculated at 1% per month. Goods were supplied by the supplier, which was duly received by the Corporate Debtor vide commercial invoice bearing Invoice No.

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## Issues and analysis

### Issue 1: Whether the Applicant is an Operational Creditor under the Insolvency and Bankruptcy Code, 2016, …

**Ratio:** Section 5(20) of the IBC defines an 'Operational Creditor' as a person to whom an

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**Reasoning:** The NCLT reasoned that the definition of 'Operational Creditor' in Section 5(20)

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**Interpretation:** The interpretation of Section 5(20) is that the legislature intended to include

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**Application:** In this case, the Applicant, Macquarie Bank Limited, is the assignee of the

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## Parties

- **Judges:** CHIEF JUSTICE…; Sh.R. Varad…
- **Appellants:** Macquarie Bank…
- **Respondents:** Shilpi Cable…
- **Advocates:** Vivek S…; Pooja M.…; +3 more

## Timeline

- **2016-01-18 — Contract…**: Parties entered into a contract of…
- **2016-03-28 — Invoice…**: Commercial invoice bearing Invoice…

## 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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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/shilpi-cable-technologies-ltd-cp-no-ib-64-pb-2017-a0f68d7a