# In the matter of Shree Narmada Architectural Systems Ltd. C.P. (IB) No. 88-NCLT-AHM-2019

> NCLT judgment dated 2019-12-10. Citation: TCN-2019-NCLT-00257. M/s. Indu Corporation Private Limited, an operational creditor, filed a petition under Section…

- **Court:** NCLT
- **Order date:** 10 Dec 2019
- **Citation:** TCN-2019-NCLT-00257
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-narmada-architectural-systems-ltd-cp-ib-no-88-nclt-ahm-2019-065614f2

## Summary

### Background

M/s. Indu Corporation Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s. Shree Narmada Architectural Systems Private Limited, the corporate debtor, for outstanding payments related to the supply of steel and allied material. The total amount claimed to be in default is Rs. 4,57,71,578/-, including interest. The operational creditor submitted various documents, including invoices, lorry receipts, and bank statements, to support their claim. The corporate debtor contested the petition, arguing that the petition was time-barred, the rate of interest varied, and the factory premises were taken over by DRT-III. The Adjudicating Authority examined the records and arguments presented by both

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## Facts

M/s. Indu Corporation Private Limited (operational creditor) supplied steel and allied material to M/s. Shree Narmada Architectural Systems Private Limited (corporate debtor) between 2015-06-30 and 2015-08-08. The corporate debtor failed to make full payment for the supplied goods. The operational creditor issued a demand notice on 2018-06-06, which the corporate debtor received on 2018-06-12 and replied to on 2018-07-05. The last payment received by the operational creditor was on 2016-03-31. The operational creditor filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 4,57,71,578/-. The corporate debtor argued that the petition was time-barred and that its factory premises were taken over by DRT-III on 2015-08-06.

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor is admissible under Section 9 of the …

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

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**Reasoning:** The Adjudicating Authority considered the documents and arguments presented by both

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** In this case, the Adjudicating Authority found that the operational creditor

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## Parties

- **Judges:** Manorama…
- **Appellants:** Indu Corporation…
- **Respondents:** Shree Narmada…; Shree Narmada…
- **Advocates:** Arjun S…; Vidhi Th…; +3 more

## Timeline

- **2015-06-30 — Start of Materi…**: M/s. Indu Corporation Private Limited started supplying steel and allied material to M/s.…
- **2015-08-08 — End of Materia…**: M/s. Indu Corporation Private Limited completed the supply of steel and allied material…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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