# In the matter of Shree Oshiya Ferro Alloys Private Limited CP (IB) 2131-MB-C-IV-2019

> NCLT judgment dated 2020-01-16. Citation: TCN-2020-NCLT-02315. The case involves a petition filed by Mehsons Steel Private Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 16 Jan 2020
- **Citation:** TCN-2020-NCLT-02315
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-oshiya-ferro-alloys-private-limited-cp-ib-2131-mb-c-iv-2019-1fb7e7d1

## Summary

### Background

The case involves a petition filed by Mehsons Steel Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Shree Oshiya Ferro Alloys Private Limited (Corporate Debtor) for failing to pay a total sum of ₹25,15,817.00. The Operational Creditor supplied TMT Bar to the Corporate Debtor based on a purchase order. Despite raising multiple invoices, the Corporate Debtor defaulted on payments. The Operational Creditor served a demand notice, but the Corporate Debtor did not reply. The Corporate Debtor admitted liability but failed to make the full payment.

## Facts

Mehsons Steel Private Limited (Operational Creditor) supplied TMT Bars to Shree Oshiya Ferro Alloys Private Limited (Corporate Debtor) based on Purchase Order No. 19-20/008 dated 15.02.2018, valued at ₹1,12,18,968.00. The Operational Creditor raised eleven invoices during February 2019, totaling ₹1,12,06,175.00. The Corporate Debtor made partial payments totaling ₹86,90,358.00, leaving an outstanding debt of ₹25,15,817.00. The Operational Creditor issued a Demand Notice on 15.05.2019, which was served on the Corporate Debtor on 17.05.2019. The Corporate Debtor acknowledged the debt in its reply dated 12.09.2019 but failed to clear the outstanding dues. The date of default is stated as 28.03.2019. The invoices did not provide for interest in case of delayed payments.

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## Issues and analysis

### Issue 1: Whether the application made by the Operational Creditor is complete in all respects as required by …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) and related rules specify the

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**Reasoning:** The Adjudicating Authority determined that the application was complete in all respects

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**Interpretation:** The completeness of the application is a prerequisite for the admission of the

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**Application:** The Operational Creditor provided the necessary invoices, demand notice, and

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Mehsons Steel…
- **Respondents:** Shree Oshiya…

## Timeline

- **2018-02-15 — Purchase…**: Purchase Order No. 19-20/008 issued by the…
- **2018-12-14 — Partial P…**: Corporate Debtor made a…

## 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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