# In the matter of Sri balaji Metallics Private Limited CP(IB) No. 165-KB-2018

> NCLT judgment dated 2018-10-03. Citation: TCN-2018-NCLT-00683. M/s. Kishore and Company, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 3 Oct 2018
- **Citation:** TCN-2018-NCLT-00683
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-balaji-metallics-private-limited-cpib-no-165-kb-2018-f38d4b14

## Summary

### Background

M/s. Kishore and Company, an operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Sri Balaji Metallics Private Limited, the corporate debtor, due to non-payment of Rs. 31,20,806/- along with 18% interest per annum. The operational creditor and corporate debtor had a contract for the transportation of linkage coal. The operational creditor transported the goods as agreed, and generated invoices. The corporate debtor made partial payments, but a significant amount remained outstanding. The operational creditor issued a demand notice under Section 8 of the IBC, which was received by the corporate debtor, but no reply or dispute was filed.

## Facts

M/s. Kishore and Company (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against M/s. Sri Balaji Metallics Private Limited (Corporate Debtor) for non-payment of Rs. 31,20,806/- plus 18% interest. The Operational Creditor and Corporate Debtor had a contract for coal transportation from October 2014 to May 2016. The Operational Creditor transported the goods and raised invoices totaling Rs. 53,66,660/-, after deductions. The Corporate Debtor paid Rs. 21,92,374/- against one bill. The remaining amount of Rs. 31,20,806/- remained unpaid. The Corporate Debtor deposited TDS amounts of Rs. 15,407/- and Rs. 16,150/- against two pending invoices. A demand notice was issued on 07-01-2018 and received on 10-01-2018,

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## Issues and analysis

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

**Ratio:** The application filed by M/s. Kishore and Company, represented by its sole Proprietor, is

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**Reasoning:** The Corporate Debtor raised an objection regarding the maintainability of the

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

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**Application:** The court determined that the application filed by the operational creditor was

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## Parties

- **Judges:** Jinan…
- **Appellants:** M/s. Kishore and…
- **Respondents:** M/s. Sri Balaji…

## Timeline

- **2014-10-01 — Contract Sta…**: Contract between Operational Creditor and…
- **2016-05-01 — Contract En…**: Contract between Operational Creditor and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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