# In the matter of Simplex Infrastructures Limited C.P. (IB) No. 971-KB-2018

> NCLT judgment dated 2019-08-09. Citation: TCN-2019-NCLT-01997. RDC Concrete (India) Private Limited, an operational creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 9 Aug 2019
- **Citation:** TCN-2019-NCLT-01997
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/simplex-infrastructures-limited-cp-ib-no-971-kb-2018-02f18c76

## Summary

### Background

RDC Concrete (India) Private Limited, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Simplex Infrastructures Limited, the corporate debtor, for initiating the corporate insolvency resolution process. The application was based on outstanding dues for the supply of ready-mix concrete. The corporate debtor contested the application, claiming pre-existing disputes and lack of compliance with Section 9(3)(c) of the IBC. The operational creditor argued that no pre-existing dispute was raised before the demand notice and that the corporate debtor had made payments and canceled bank guarantees, indicating settlement of earlier disputes.

## Facts

RDC Concrete (India) Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Simplex Infrastructures Limited (Corporate Debtor) for initiating the corporate insolvency resolution process. The application was based on outstanding dues of Rs. 3,63,45,375/- as of April 30, 2018, for the supply of ready-mix concrete. The Operational Creditor had supplied ready-mix concrete to the Corporate Debtor for its various projects in Mumbai and Kolkata, raising invoices aggregating to Rs. 5,51,42,721/-, against which the Corporate Debtor had paid Rs. 2,31,38,380/-. The Operational Creditor issued a demand notice dated April 2, 2018, which was received by the Corporate Debtor on April 4, 2018. The Corporate

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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 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court reasoned that the Corporate Debtor's attempt to bring forth already settled old

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**Interpretation:** The interpretation of Section 9 involves determining whether the operational

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**Application:** The court applied the ratio to the facts by considering the evidence presented

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** M/S. RDC CONCRETE…
- **Respondents:** SIMPLEX INFRASTRUC…; M/s. SIMPLEX…
- **Advocates:** Rahul Ch…; Chirag Sa…; +5 more

## Timeline

- **2016-01-01 — Insolvency and…**: Enactment of the Insolvency…
- **2017-04-20 — Corporate Debtor's…**: Corporate Debtor sent a letter to the Operational Creditor alleging quality issues and…

## 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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