# In the matter of Steelco India Pvt. Ltd. (IB)-383-(ND)-2017

> NCLT judgment dated 2017-11-14. Citation: TCN-2017-NCLT-00205. M/s Alloy Steels Emporium (P) Ltd. filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 14 Nov 2017
- **Citation:** TCN-2017-NCLT-00205
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/steelco-india-pvt-ltd-ib-383-nd-2017-c0a9171a

## Summary

### Background

M/s Alloy Steels Emporium (P) Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process against M/s Steelco India Pvt. Ltd., the Corporate Debtor, for failing to liquidate its outstanding liability. The Operational Creditor supplied steel rods and bars to the Corporate Debtor between 27.06.2014 and 22.09.2014, raising three invoices totaling Rs. 29,05,146. The Corporate Debtor made partial payments amounting to Rs. 18,08,863, reducing the outstanding liability to Rs. 10,96,283. Despite reminders, no further steps were taken to reduce the liability, although the Corporate Debtor acknowledged the amount due and promised payment by 31.10.2016. A notice under Section 8 of the Code

…

## Facts

M/s Alloy Steels Emporium (P) Ltd. (Operational Creditor) supplied steel rods and bars to M/s Steelco India Pvt. Ltd. (Corporate Debtor) between June 27, 2014, and September 22, 2014. Three invoices were raised for a total of Rs. 29,05,146. The Corporate Debtor made partial payments totaling Rs. 18,08,863, reducing the outstanding liability to Rs. 10,96,283. Despite reminders, the Corporate Debtor failed to fully liquidate the debt, although its director acknowledged the debt and promised payment by October 31, 2016. A notice under Section 8 of the IBC was sent on August 16, 2017. Further payments of Rs. 1,50,000 and Rs. 46,283 were made, reducing the debt to Rs. 9 lakhs, which remained unpaid. The Corporate Debtor's director appeared in person and tendered post-dated

…

## Issues and analysis

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

**Ratio:** The legal principle applied is that if the Corporate Debtor acknowledges the debt owed to

…

**Reasoning:** The court reasoned that the Corporate Debtor acknowledged the debt owed to the

…

**Interpretation:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an Operational

…

**Application:** In this case, the Corporate Debtor acknowledged the debt but failed to fully

…

## Parties

- **Judges:** Ina Mal…; SH. S.K MOH…
- **Appellants:** M/s Alloy Steels…
- **Respondents:** M/s Steelco India…

## Timeline

- **2014-06-27 — Supply of Steel Rods…**: The Operational Creditor started supplying…
- **2014-09-22 — Supply of Steel Rods…**: The Operational Creditor completed the supply of steel rods and bars to the Corporate…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/steelco-india-pvt-ltd-ib-383-nd-2017-c0a9171a