# In the matter of Sungiil India Private Limited IB-492(ND)-2018

> NCLT judgment dated 2018-06-01. Citation: TCN-2018-NCLT-01340. Vaiva Metals and Alloys Private Limited filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 1 Jun 2018
- **Citation:** TCN-2018-NCLT-01340
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sungiil-india-private-limited-ib-492nd-2018-0dacc402

## Summary

### Background

Vaiva Metals and Alloys Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against Sungil India Private Limited. The applicant claimed that the corporate debtor defaulted on payments for alloy steel blocks supplied between 2015 and 2016.

## Facts

Vaiva Metals and Alloys Private Limited (the Applicant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Sungil India Private Limited (the Corporate Debtor). The Applicant is involved in importing and stocking various types of steel. The Corporate Debtor was incorporated on 06.03.2007. The Applicant supplied 18,292 kg of alloy steel blocks to the Corporate Debtor between 03.09.2015 and 20.10.2016, raising four invoices totaling Rs. 36,91,142/-. The Corporate Debtor made a part payment of Rs. 5,05,280/- on 17.10.2016, leaving a balance of Rs. 31,85,862/-. The Applicant issued a demand notice on 04.01.2018, which was received by the Corporate Debtor on 13.02.2018. The

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## Issues and analysis

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

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

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**Reasoning:** The applicant, being an operational creditor, has demonstrated that the corporate debtor

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The applicant met the requirements of Section 9 by providing evidence of the

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## Parties

- **Judges:** DEEPTI M…
- **Appellants:** VAIVA METALS AND…
- **Respondents:** SUNGIL INDIA…

## Timeline

- **2015-09-03 — Supply of Alloy Steel…**: Applicant supplied alloy steel blocks to the Corporate Debtor between 03.09.2015 and…
- **2016-10-20 — Supply of Alloy Steel…**: Applicant supplied alloy steel blocks to the Corporate Debtor between 03.09.2015 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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