# In the matter of Shree Sai Steel Industries India Pvt. Ltd. CP No. 343-I&BC-NCLT-MB-MAH-2019

> NCLT judgment dated 26 Sept 2019. Citation: TCN-2019-NCLT-01234. The operational creditor filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 26 Sept 2019
- **Citation:** TCN-2019-NCLT-01234
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-sai-steel-industries-india-pvt-ltd-cp-no-343-ibc-nclt-mb-mah-2019-15c8a974

## Summary

### Background

The operational creditor filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against the corporate debtor for an unpaid debt related to the supply of goods.

## Facts

Prabhat Steel Traders Private Limited, the operational creditor, filed a petition in Form No. 1 on January 10, 2019, under section 9 of the Insolvency and Bankruptcy Code, 2016, against Shree Sai Steel Industries India Private Limited, the corporate debtor. The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) for a total debt of Rs. 5,97,09,566/-, which included a principal amount of Rs. 2,05,28,636.00 and interest of Rs. 3,91,80,930.00 at 21% per annum till November 30, 2018, with further interest accruing thereafter.

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## Issues and analysis

### Issue 1: Whether there is an existence of debt and…

**Ratio:** A clear existence of debt and default, coupled with the corporate debtor's acknowledgment…

**Reasoning:** The NCLT found that goods were supplied on demand, invoices remained unpaid, and the…

**Interpretation:** The court interpreted 'debt' and 'default' broadly to include acknowledged…

**Application:** Given the unpaid invoices, the corporate debtor's acknowledgment of the debt,…

## Parties

- **Judges:** M.K. Sh…; Chandra Bha…
- **Advocates:** For the Petitioner…; For the Respondent…

## Timeline

- **June 9, 2018 — Demand Notice…**: A demand notice was served upon the Respondent/debtor under Section 8 of the Insolvency &…
- **January 10, 2019 — Petition…**: A petition on Form No. 1 was filed by the Operational Creditor under Section 9 of the…

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