# In the matter of Terrafirma Superstruct LLP CP 2334-IBC-NCLT-MB-MAH-2018

> NCLT judgment dated 2019-01-31. Citation: TCN-2019-NCLT-05077. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 31 Jan 2019
- **Citation:** TCN-2019-NCLT-05077
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/terrafirma-superstruct-llp-cp-2334-ibc-nclt-mb-mah-2018-0204e5af

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Sandeep Steels, an operational creditor, against Terrafirma Superstruct LLP, the corporate debtor, for unpaid operational debt. The operational creditor claimed that they sold, supplied, and delivered goods to the corporate debtor, raising invoices for the same. The corporate debtor initially failed to make payments, leading to the filing of this petition.

## Facts

Sandeep Steels, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Terrafirma Superstruct LLP, the corporate debtor, due to unpaid operational debt. The operational creditor sold, supplied, and delivered goods to the corporate debtor, raising invoices. The total amount in default was stated as ₹7,59,670 as of November 20, 2017, including principal and interest. The invoices prescribed a 24% interest rate for late payments. The corporate debtor issued a cheque for ₹7,11,068, which was dishonored with the remark 'Payment stopped by Drawer'. The operational creditor issued a demand notice dated February 27, 2018, which was returned by the corporate debtor. The corporate debtor did not appear before the bench or

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## Issues and analysis

### Issue 1: Whether the operational creditor has established the existence of an operational debt and a default …

**Ratio:** The legal principle applied is that an 'Operational Debt' exists when there is a claim in

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**Reasoning:** The court reasoned that the operational creditor provided evidence of invoices, delivery

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**Interpretation:** The interpretation of 'Operational Debt' and 'Default' under the IBC is crucial

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**Application:** In this case, the court applied the definitions of 'Operational Debt' and

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Sandeep S…
- **Respondents:** TERRAFIRMA…
- **Advocates:** Angad S…; Siddharth M…

## Timeline

- **2017-11-20 — Amount D…**: Amount due stated as…
- **2017-12-02 — Cheque I…**: Corporate Debtor issued a cheque of…

## 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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