# In the matter of Super Iron Foundry Pvt. Ltd. CP (IB) No. 356-KB-2018

> NCLT judgment dated 2019-10-21. Citation: TCN-2019-NCLT-00908. The case involves an application for the initiation of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 21 Oct 2019
- **Citation:** TCN-2019-NCLT-00908
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/super-iron-foundry-pvt-ltd-cp-ib-no-356-kb-2018-0fadfadb

## Summary

### Background

The case involves an application for the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, filed by Imperial Refractories, an operational creditor, against Super Iron Foundry Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for goods supplied. The corporate debtor argued that there was a pre-existing dispute regarding the quality and quantity of the materials supplied.

## Facts

Imperial Refractories, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Super Iron Foundry Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for goods supplied, with an outstanding amount of Rs. 18,48,170/- inclusive of interest. Three invoices totaling Rs. 16,97,417/- remained unpaid for supplies made in April, May, and June 2018. The corporate debtor, despite several requests, did not make the payment. The corporate debtor raised quality issues with the goods supplied and claimed a pre-existing dispute. The operational creditor served a notice under Section 8 of the IBC, but the

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, for …

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

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**Reasoning:** The court considered the submissions from both parties and perused the material on

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** In this case, the court found that the operational debt exceeded the threshold

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Imperial Refractor…
- **Respondents:** Super Iron…

## Timeline

- **2018-04-01 — Supplies made by…**: Operational creditor made supplies to the corporate debtor in April 2018 based on…
- **2018-05-01 — Supplies made by…**: Operational creditor made supplies to the corporate debtor in May 2018 based on purchase…

## 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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