# In the matter of Tehri Iron & Steel Casting Ltd. (IB)-447(ND)-2018

> NCLT judgment dated 2018-05-31. Citation: TCN-2018-NCLT-01347. Amrit Steels, an operational creditor, filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 31 May 2018
- **Citation:** TCN-2018-NCLT-01347
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tehri-iron-steel-casting-ltd-ib-447nd-2018-9370dc3b

## Summary

### Background

Amrit Steels, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Tehri Iron & Steel Casting Ltd., the corporate debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). The application was based on the corporate debtor's failure to pay an outstanding debt of Rs. 2,54,84,828/- for the supply of old iron scrap. The corporate debtor had approached Amrit Steels for the supply of old iron scrap, and the applicant supplied the same based on purchase orders, issuing invoices amounting to Rs. 4,48,82,739/- between April 28, 2017, and June 9, 2017. The corporate debtor made partial payments amounting to Rs. 1,44,50,000/- between June 15, 2017, and March 13, 2018, and also returned some

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## Facts

Amrit Steels (the applicant/operational creditor) supplied old iron scrap to Tehri Iron & Steel Casting Ltd. (the respondent/corporate debtor) based on purchase orders. Invoices totaling Rs. 4,48,82,739/- were issued between April 28, 2017, and June 9, 2017. The corporate debtor made partial payments of Rs. 1,44,50,000/- between June 15, 2017, and March 13, 2018, and returned iron scrap, raising invoices between February 8, 2018, and February 23, 2018. An outstanding amount of Rs. 2,54,84,828/- remained unpaid. The applicant issued a notice under Section 8 of the Insolvency and Bankruptcy Code on March 19, 2018, when the corporate debtor failed to pay the balance. The corporate debtor did not reply to the demand notice or raise any dispute. The applicant has not

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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 Tribunal considered the evidence presented by the applicant, including the invoices,

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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 applicant, Amrit Steels, had supplied old iron scrap to the

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## Parties

- **Judges:** DEEPTI M…
- **Appellants:** Amrit S…
- **Respondents:** Tehri Iron and…

## Timeline

- **2017-04-28 — Invoice Perio…**: Start date of the period during which Amrit Steels issued invoices to Tehri Iron & Steel…
- **2017-06-09 — Invoice Per…**: End date of the period during which Amrit Steels issued invoices to Tehri Iron & Steel…

## 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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