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

> NCLT judgment dated 2019-09-26. Citation: TCN-2019-NCLT-01222. The case involves an application filed by Prabhat Steel Traders Private Limited, the…

- **Court:** NCLT
- **Order date:** 26 Sept 2019
- **Citation:** TCN-2019-NCLT-01222
- **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-a36c6efa

## Summary

### Background

The case involves an application filed by Prabhat Steel Traders Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shree Sai Steel Industries India Pvt. Ltd, the Corporate Debtor. The application was filed due to a total debt of Rs. 5,97,09,566/-. A demand notice was served to the Corporate Debtor, and the Operational Creditor claimed that goods were supplied as per the invoices, with the description of the goods being "Hot Rolled& Pilled Round Bars". The debt amount was allegedly confirmed by the debtor as per the statement of account.

## Facts

Prabhat Steel Traders Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shree Sai Steel Industries India Pvt. Ltd, the Corporate Debtor. The application was based on a total debt of Rs. 5,97,09,566/-, comprising a principal amount of Rs. 2,05,28,636.00 and interest of Rs. 3,91,80,930.00 calculated at 21% per annum until November 30, 2018. The Operational Creditor claimed that a 'Supply of goods Order' was placed by the Corporate Debtor, and goods described as "Hot Rolled& Pilled Round Bars" were supplied. A demand notice dated 09.06.2018 was served upon the Respondent/debtor. The debt amount was allegedly confirmed

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## Issues and analysis

### Issue 1: Whether the petition/application filed by the Operational Creditor is admissible for initiating …

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

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**Reasoning:** The court considered the totality of the facts and circumstances, including the demand

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

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**Application:** The court applied the provisions of Section 9 to the facts of the case, finding

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## Parties

- **Judges:** M.K. Sh…; Chandra Bha…
- **Appellants:** Prabhat Steel…
- **Respondents:** Shree Sai Steel…

## Timeline

- **2019-01-10 — Petition…**: A Petition on Form No. 1 was…
- **2018-06-09 — Demand N…**: A Demand Notice was served upon the Respondent/debtor as prescribed under Section 8 of…

## 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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