# In the matter of SSB Structural & Galvanising Private Limited CP(IB) No. 720-9-HDB-2019

> NCLT judgment dated 2021-07-28. Citation: TCN-2021-NCLT-01585. The case involves an application filed by Bharat Industrial Corporation, the Operational…

- **Court:** NCLT
- **Order date:** 28 Jul 2021
- **Citation:** TCN-2021-NCLT-01585
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ssb-structural-galvanising-private-limited-cpib-no-720-9-hdb-2019-15aad51c

## Summary

### Background

The case involves an application filed by Bharat Industrial Corporation, the Operational Creditor, against SSB Structural & Galvanising Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Operational Creditor alleges that the Corporate Debtor defaulted on a payment of Rs. 3,31,17,194, which includes a principal amount of Rs. 3,13,69,118 and interest of Rs. 17,48,076 calculated at 18% per annum from the due date of March 17, 2019. The Corporate Debtor acknowledged the debt in balance confirmation letters but failed to make the payment. The Corporate Debtor raised technical objections, including the Operational Creditor being a sole proprietorship and non-compliance with certain procedural requirements under

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## Facts

Bharat Industrial Corporation (Operational Creditor) filed a petition against SSB Structural & Galvanising Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 3,31,17,194. This amount includes a principal of Rs. 3,13,69,118 and interest of Rs. 17,48,076 calculated at 18% per annum from March 17, 2019. The Operational Creditor supplied Zinc Ingots to the Corporate Debtor between January 22, 2018, and December 28, 2018, and raised invoices for Rs. 3,13,69,118. The Corporate Debtor acknowledged the debt through balance confirmation letters issued between February and September 2019. A demand notice dated July 8, 2019, was issued by the Operational Creditor, demanding the total debt amount. The

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is maintainable against the Corporate Debtor, …

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

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**Reasoning:** The NCLT found that the Operational Creditor had supplied Zinc Ingots to the Corporate

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if an operational creditor can

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**Application:** In this case, the Operational Creditor provided evidence of the supply of

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## Parties

- **Judges:** Madan B.…; BINOD KUMAR…
- **Appellants:** Bharat Industrial…
- **Respondents:** SSB Structural &…

## Timeline

- **2018-01-22 — Supply of Zin…**: Operational Creditor supplied Zinc Ingots to the Corporate Debtor from 22.01.2018 to…
- **2018-12-28 — Supply of Zin…**: Operational Creditor supplied Zinc Ingots to the Corporate Debtor from 22.01.2018 to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(23) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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