# In the matter of The Orissa Minerals Development Company Ltd. C.P. (I.B.) No. 729-KB-2017

> NCLT judgment dated 2018-02-20. Citation: TCN-2018-NCLT-01796. The case involves an application filed by M/s. Orissa Stevedores Limited, the Operational…

- **Court:** NCLT
- **Order date:** 20 Feb 2018
- **Citation:** TCN-2018-NCLT-01796
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/the-orissa-minerals-development-company-ltd-cp-ib-no-729-kb-2017-c8ee8e80

## Summary

### Background

The case involves an application filed by M/s. Orissa Stevedores Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. The Orissa Minerals Development Company Ltd., the Corporate Debtor. The Operational Creditor claims that the Corporate Debtor defaulted on a payment of Rs. 13,06,89,315/- based on an arbitral award dated 20.05.2015. The Corporate Debtor had issued a tender notice in 2005 for handling, stacking, and stevedoring iron ore fines, which the Operational Creditor won. A contract agreement was signed in 2005 and extended in 2006, ending in 2007. Disputes arose over deductions made by the Corporate Debtor, leading to arbitration proceedings.

## Facts

M/s Orissa Stevedores Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. The Orissa Minerals Development Company Ltd. (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The claim is based on an operational debt of Rs. 13,06,89,315/- arising from an arbitral award dated 20.05.2015 in favor of the Operational Creditor. The Corporate Debtor issued a tender notice dated 14.01.2005 for handling, stacking, and stevedoring iron ore fines, which the Operational Creditor won. A contract agreement was signed on 06.04.2005 and extended on 27.03.2006. Disputes arose over deductions made by the Corporate Debtor in the bills, leading to arbitration. The Arbitrator ruled in favor

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## Issues and analysis

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

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

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**Reasoning:** The court found that the Operational Creditor had complied with the provisions of Section

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

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Appellants:** M/s Orissa…
- **Respondents:** M/s. The Orissa…

## Timeline

- **2005-01-14 — Tender N…**: The Corporate Debtor issued a tender notice for handling, stacking, and stevedoring iron…
- **2005-02-10 — Bid Submi…**: The Operational Creditor submitted its…

## 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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