# In the matter of Swastik Tungsten Private Limited CP. (IB) No. 4350-MB-2018

> NCLT judgment dated 2021-12-23. Citation: TCN-2021-NCLT-00061. Kerliee Investment Limited, the Operational Creditor/Petitioner, filed a petition under Section…

- **Court:** NCLT
- **Order date:** 23 Dec 2021
- **Citation:** TCN-2021-NCLT-00061
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swastik-tungsten-private-limited-cp-ib-no-4350-mb-2018-754d6503

## Summary

### Background

Kerliee Investment Limited, the Operational Creditor/Petitioner, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, against Swastik Tungsten Private Limited, the Corporate Debtor. The petition was filed on 24.06.2021, claiming a default of Rs. 4,10,52,885.29/- as of 29.06.2021. The Operational Creditor and Corporate Debtor had an agreement in 2014 regarding the transport of ore. Two shipments of ore were transported by the Operational Creditor to the Corporate Debtor, and invoices were raised. Later, the Corporate Debtor also transported shipments to the Operational Creditor. The Corporate Debtor acknowledged the debt but claimed an oral

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## Facts

Kerliee Investment Limited (Operational Creditor) filed a petition against Swastik Tungsten Private Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, claiming a default of Rs. 4,10,52,885.29/- as of 29.06.2021. The debt arose from an agreement in 2014 for the transport of ore, with two shipments transported by the Operational Creditor to the Corporate Debtor. The Corporate Debtor also transported shipments to the Operational Creditor. The Operational Creditor submitted Form-5, stating the total amount in default as Rs.1,56,22,028.45/- for dues against Invoice No. 015/02 dated 15.01.2015 and Rs. 1,06,14,939.36/- for dues against Invoice No. 015/03 dated 15.01.2015. The Operational Creditor is a company registered under the laws of

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## Issues and analysis

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

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

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**Reasoning:** The court observed that the operational debt exceeded Rs. 1 lakh and the application

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**Interpretation:** The court interpreted Section 9 to mean that if the operational debt is above

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**Application:** The court found that the operational debt exceeded Rs. 1 lakh and the

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** Kerliee Investment…
- **Respondents:** Swastik Tungsten…

## Timeline

- **2014-01-01 — Agreement for Transport…**: The Operational Creditor and the Corporate Debtor entered into an agreement for the…
- **2015-01-15 — Invoices…**: The Operational Creditor raised Invoice No. 015/02 and Invoice No. 015/03 for 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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