# In the matter of TDT Copper Limited Company Petition (IB) No. 2817-ND-2019

> NCLT judgment dated 2020-07-15. Citation: TCN-2020-NCLT-01031. Trafigura India Private Limited, the Operational Creditor, filed an application to initiate…

- **Court:** NCLT
- **Order date:** 15 Jul 2020
- **Citation:** TCN-2020-NCLT-01031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tdt-copper-limited-company-petition-ib-no-2817-nd-2019-bd0fac73

## Summary

### Background

Trafigura India Private Limited, the Operational Creditor, filed an application to initiate corporate insolvency resolution process against TDT Copper Limited, the Corporate Debtor, due to a default in payment of Rs. 59,72,40,162/- under a settlement agreement dated 20-11-2018. The Operational Creditor supplied copper cathodes to the Corporate Debtor under a Master Sale Agreement (MSA) dated 27-01-2016. Disputes arose regarding the amount due, with the Corporate Debtor claiming various issues such as non-supply of copper cathode, non-adjustment of payments, and GST-related matters. The Corporate Debtor also argued that the settlement agreement was one-sided and that the outstanding amount was within the maximum exposure limit under the MSA.

## Facts

Trafigura India Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the corporate insolvency resolution process against TDT Copper Limited (Corporate Debtor). The claim was based on a default in payment of Rs. 59,72,40,162/- under a settlement agreement dated 20-11-2018. The Operational Creditor and Corporate Debtor had entered into a Master Sale Agreement (MSA) dated 27-01-2016, for the supply of copper cathodes. The Corporate Debtor defaulted in making payments as per the MSA. A settlement agreement was entered into on 20-11-2018, where the Corporate Debtor agreed to pay Rs. 63,81,63,368/- as of 31-08-2018, with interest. The Corporate Debtor paid Rs. 12,30,59,615/- between 31-08-2018

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## Issues and analysis

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

**Ratio:** The ratio is that an application under Section 9 of the IBC can only be initiated for an

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**Reasoning:** The court reasoned that the claim was based on a settlement agreement, and the Corporate

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**Interpretation:** The interpretation is that a settlement agreement, which is essentially a

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**Application:** In this case, the court found that the settlement agreement did not fall under

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## Parties

- **Judges:** Sh. Abni Ranjan…; Sh. Kapal Kumar…
- **Appellants:** Trafigura India…
- **Respondents:** TDT Copper…

## Timeline

- **2016-01-27 — Master Sale A…**: Operational Creditor and Corporate Debtor entered into a Master Sale Agreement for the…
- **2018-11-20 — Settlement Ag…**: Operational Creditor and Corporate Debtor entered into a settlement agreement where…

## 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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