# 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-02319. The case involves a petition filed by Mehsons Steel Private Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 16 Jan 2020
- **Citation:** TCN-2020-NCLT-02319
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-oshiya-ferro-alloys-private-limited-cp-ib-2131-mb-c-iv-2019-6eb7ada4

## 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 Bars to the Corporate Debtor based on a purchase order. The Corporate Debtor made partial payments, but a significant amount remained unpaid. The Operational Creditor issued 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 several payments, including ₹16,45,257.00 on 14.12.2018, ₹10,00,000.00 on 14.12.2018, ₹40,00,000.00 on 15.12.2018, ₹10,00,000.00 on 15.12.2018, and ₹10,45,101.00 on 28.03.2019. The date of default is stated as 28.03.2019. The total debt due and payable to the Operational Creditor is ₹25,15,817.00. The Operational Creditor served a Demand Notice in Form 3 dated 15.05.2019, which was served on the Corporate Debtor on 17.05.2019. The

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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 outline the

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**Reasoning:** The Adjudicating Authority found that the application made by the Operational Creditor

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

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**Application:** The Adjudicating Authority determined that the Operational Creditor's

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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 Corporate Debtor for TMT Bars valued at…
- **2018-12-14 — Partial P…**: Corporate Debtor paid…

## 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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