# In the matter of Shriramrathi Steels Industries Ltd. CP (IB) No. 391-KB-2018

> NCLT judgment dated 2018-08-02. Citation: TCN-2018-NCLT-01017. The case involves an application filed by Jai Balaji Industries Limited, the Operational…

- **Court:** NCLT
- **Order date:** 2 Aug 2018
- **Citation:** TCN-2018-NCLT-01017
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shriramrathi-steels-industries-ltd-cp-ib-no-391-kb-2018-386e2220

## Summary

### Background

The case involves an application filed by Jai Balaji Industries Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the corporate insolvency resolution process against Shriramrathi Steels Industries Limited, the Corporate Debtor. The Operational Creditor alleged that the Corporate Debtor defaulted on a payment of Rs. 40,52,41,203, comprising Rs. 19,20,64,924 as principal and Rs. 21,31,76,279 as outstanding debt. The Corporate Debtor failed to repay the amount despite repeated demands, leading to the application.

## Facts

Jai Balaji Industries Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Shriramrathi Steels Industries Limited, the Corporate Debtor, for defaulting on a payment of Rs. 40,52,41,203. The Operational Creditor supplied iron and steel products to the Corporate Debtor between 2012 and 2013, raising 339 invoices for a total sum of Rs. 47,56,65,049. The Corporate Debtor made part payments totaling Rs. 28,36,00,125, with the last payment of Rs. 70,00,000 made on May 27, 2013. A demand notice was issued on April 13, 2016, to which the Corporate Debtor replied on May 14, 2016, proposing to pay the principal amount in 11 monthly installments. However, the Corporate Debtor failed to make the payment,

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9(5) of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for

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**Reasoning:** The court reasoned that the Operational Creditor provided sufficient evidence, including

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP if a

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**Application:** The Operational Creditor demonstrated that the Corporate Debtor defaulted on

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## Parties

- **Judges:** Jinan…
- **Appellants:** Jai Balaji…
- **Respondents:** Shriramrathi…

## Timeline

- **2012-08-09 — Supply of Iron and…**: Operational Creditor supplied iron and steel products to the Corporate Debtor between…
- **2013-08-01 — Supply of Iron and…**: Operational Creditor supplied iron and steel products to the Corporate Debtor between…

## 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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