# In the matter of Subhlabh Steels Private Limited C.P. (IB) No. 2036-KB-2019

> NCLT judgment dated 2021-12-09. Citation: TCN-2021-NCLT-00214. Chaitanya Alloys Private Limited, an operational creditor, filed a company petition under…

- **Court:** NCLT
- **Order date:** 9 Dec 2021
- **Citation:** TCN-2021-NCLT-00214
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/subhlabh-steels-private-limited-cp-ib-no-2036-kb-2019-5c67ca41

## Summary

### Background

Chaitanya Alloys Private Limited, an operational creditor, filed a company petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Subhlabh Steels Private Limited, the corporate debtor, for failing to pay an outstanding debt of Rs. 4,95,29,083/-. The operational creditor claimed that the corporate debtor had engaged them for supplying TMT Bars, and tax invoices cum challans were generated. The date of default was stated as 06.04.2018.

## Facts

Chaitanya Alloys Private Limited (Operational Creditor) supplied TMT Bars to Subhlabh Steels Private Limited (Corporate Debtor). Tax Invoice Cum Challans were generated. The Corporate Debtor made part payments, with the last payment of Rs. 1,40,000/- made on 06.12.2018. The Operational Creditor sent letters on 14.03.2017, 05.01.2018, and 02.11.2018, requesting clearance of outstanding dues of Rs. 3,86,16,900.86. The Corporate Debtor acknowledged the debt in letters dated 17.08.2017 and 15.01.2019, citing bad market conditions as the reason for delay. The Operational Creditor issued a statutory demand notice on 06.08.2019, seeking release of the principal amount of Rs. 3,86,16,900.86. The total amount claimed by the Operational Creditor was Rs. 4,95,29,083/-. The

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court found that the application was complete in all respects as required by law. The

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover debts from

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**Application:** The court applied Section 9 to the facts of the case and found that the

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Chaitanya Alloys…
- **Respondents:** Subhlabh Steels…

## Timeline

- **2019-11-22 — Petition…**: The present petition was filed…
- **2017-03-14 — Letter S…**: Letter sent by the Operational Creditor to the Corporate Debtor requesting to clear the…

## 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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