# In the matter of Shyam Industries Ltd. C.P. (I.B) No. 20-9-NCLT-AHM-2017

> NCLT judgment dated 2017-05-24. Citation: TCN-2017-NCLT-00852. R.L. Steel & Energy Limited, the operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 24 May 2017
- **Citation:** TCN-2017-NCLT-00852
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shyam-industries-ltd-cp-ib-no-20-9-nclt-ahm-2017-9bdd2b3e

## Summary

### Background

R.L. Steel & Energy Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Shyam Industries Limited, the corporate debtor, for unpaid invoices. The petitioner claimed a total amount of Rs. 33,35,410, including Rs. 19,37,025 towards unpaid invoices and Rs. 13,98,391 towards interest. The corporate debtor acknowledged an outstanding amount of Rs. 24,00,510 and made a partial payment of Rs. 3,20,000 via RTGS. The corporate debtor also issued cheques for the remaining balance, but the petitioner denied entering into any settlement agreement. The Adjudicating Authority considered the arguments and evidence presented by both parties.

## Facts

R.L. Steel & Energy Limited (Operational Creditor) claimed that Shyam Industries Limited (Corporate Debtor) owed Rs. 33,35,410, including Rs. 19,37,025 for unpaid invoices from 2013 (dated 28.02.2013, 5.3.2013, 5.3.2013 and 20.3.2013) and Rs. 13,98,391 for interest, calculated at 18% per annum until April 15, 2017. The Operational Creditor issued a demand notice on January 15, 2017, seeking Rs. 26,74,481 towards unpaid invoices and Rs. 17,96,816 towards interest. The Corporate Debtor acknowledged an outstanding amount of Rs. 24,00,510 in a letter dated January 19, 2017, and stated that they had paid Rs. 3,20,000 via RTGS. The Corporate Debtor also issued 25 cheques for the remaining balance. The Operational Creditor denied the existence of a settlement agreement,

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## Issues and analysis

### Issue 1: Whether the claim of the …

**Ratio:** An operational debt is a claim in respect of the provision of goods or services. If the

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**Reasoning:** The Adjudicating Authority perused the notices and found that the Petitioner supplied

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**Interpretation:** Operational debt is defined under the Insolvency and Bankruptcy Code as a debt

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**Application:** The petitioner supplied goods to the corporate debtor; therefore, the claim is

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** R.L. Steel &…
- **Respondents:** Shyam Industries…; Shyam Industries…

## Timeline

- **2013-02-28 — Invoice…**: One of the invoices issued by R.L. Steel &…
- **2013-03-05 — Invoice…**: One of the invoices issued by R.L. Steel &…

## 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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