# In the matter of Surya Balaji Steels Private Limited CP-575-(IB)-CB-2017

> NCLT judgment dated 2017-10-05. Citation: TCN-2017-NCLT-00314. Chennai Ferrous Industries Limited filed a company petition against Surya Balaji Steels Private…

- **Court:** NCLT
- **Order date:** 5 Oct 2017
- **Citation:** TCN-2017-NCLT-00314
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/surya-balaji-steels-private-limited-cp-575-ib-cb-2017-02d2bfff

## Summary

### Background

Chennai Ferrous Industries Limited filed a company petition against Surya Balaji Steels Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, alleging default in payment of dues. The petitioner, an operational creditor, claimed that the respondent, the corporate debtor, failed to make payments for sponge iron pellets supplied under various invoices. The petitioner issued a demand notice on 27.03.2017, seeking payment of Rs. 84,56,464/- inclusive of interest.

## Facts

Chennai Ferrous Industries Limited (the Petitioner/Operational Creditor) is engaged in the manufacturing of sponge iron. Surya Balaji Steels Private Limited (the Respondent/Corporate Debtor) is engaged in the business of manufacturing steel. The Respondent approached the Petitioner to purchase Sponge Iron Pellets under various specifications. The Petitioner supplied the products under specified invoices. The goods were delivered on a credit basis. The Respondent failed to make payments towards the debt from 21.03.2014. The Petitioner sent a Demand Notice dated 27.03.2017, claiming Rs. 84,56,464/- inclusive of interest. The Respondent did not reply to the Demand Notice and did not appear before the Adjudicating Authority. The Petitioner claimed to be an Operational

…

## Issues and analysis

### Issue 1: Whether the Petitioner, Chennai Ferrous Industries Limited, has established a valid claim as an …

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

…

**Reasoning:** The Adjudicating Authority noted that the Petitioner had presented sufficient evidence,

…

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

…

**Application:** In this case, the Petitioner provided invoices and a demand notice as evidence

…

## Parties

- **Judges:** K. Anantha…
- **Appellants:** Chennai Ferrous…
- **Respondents:** Surya Balaji…
- **Advocates:** Sandeep…

## Timeline

- **2014-03-21 — Default in…**: Respondent has not made any payments…
- **2017-03-27 — Demand Notice…**: Demand Notice dated 27.03.2017…

## 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/surya-balaji-steels-private-limited-cp-575-ib-cb-2017-02d2bfff