# In the matter of Shri Tradco Deesan Private Limited C.P. (IB) No. 2361-NCLT-MB-2019

> NCLT judgment dated 2020-07-16. Citation: TCN-2020-NCLT-01016. Agarwal Coal Corporation India Pvt. Ltd. filed a petition against Shri Tradco Deesan Private…

- **Court:** NCLT
- **Order date:** 16 Jul 2020
- **Citation:** TCN-2020-NCLT-01016
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shri-tradco-deesan-private-limited-cp-ib-no-2361-nclt-mb-2019-2f710fc9

## Summary

### Background

Agarwal Coal Corporation India Pvt. Ltd. filed a petition against Shri Tradco Deesan Private Limited under Section 9 of the Insolvency & Bankruptcy Code, 2016, alleging default in payment of Rs. 21,82,821/- for coal supplied. The Corporate Debtor contested the petition, claiming pre-existing disputes regarding the quality and quantity of coal supplied, and also raised issues regarding invoices and debit entries.

## Facts

Agarwal Coal Corporation India Pvt. Ltd. (Operational Creditor/Petitioner) filed a petition against Shri Tradco Deesan Private Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, claiming a default of Rs. 21,82,821/- for coal supplied. The Petitioner raised invoices STC/01/18/4042 dated 22/10/2018 for Rs. 17,74,070/- and STC 01/18/4135 dated 31/01/2018 for Rs. 20,88,174/-. The Corporate Debtor contended that there were pre-existing disputes regarding the quality and quantity of coal supplied, claiming the Petitioner was liable to pay Rs. 95,70,000/- for losses due to short supply. The Corporate Debtor also disputed the invoices and a debit entry of Rs. 12,32,816/-. The NCLT found that the Corporate Debtor had made payments to the

…

## Issues and analysis

### Issue 1: Whether the claim in this petition arises out of supply of goods by the petitioner to the corporate …

**Ratio:** Section 5(21) of the Insolvency &

…

**Reasoning:** The NCLT observed that the claim arose from the supply of goods by the petitioner to the

…

**Interpretation:** The court interpreted Section 5(21) to include debts arising from the supply of

…

**Application:** The court applied the definition of operational debt to the facts, concluding

…

## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** Agarwal Coal…
- **Respondents:** Tradco Deesan…

## Timeline

- **2017-06-29 — Debit En…**: Petitioner debited the account of the…
- **2017-06-30 — Email Se…**: Petitioner sent an Email enclosing the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/shri-tradco-deesan-private-limited-cp-ib-no-2361-nclt-mb-2019-2f710fc9