# In the matter of Twenty First Century Wire Rods Limited. (IB)- 124(PB)-2017

> NCLT judgment dated 2018-01-08. Citation: TCN-2018-NCLT-01955. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Jan 2018
- **Citation:** TCN-2018-NCLT-01955
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/twenty-first-century-wire-rods-limited-ib-124pb-2017-4223aea1

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Inox Air Products Private Limited, the Operational Creditor, against Twenty First Century Wire Rods Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted on payments due under a Liquid Supply Agreement (LSA) and an Equipment License Agreement (ELA) entered into on 29.03.2012, and a subsequent Revised Agreement dated 01.04.2014. The Corporate Debtor acknowledged its liability in emails exchanged between 19.02.2015 and 21.02.2015. A cheque issued by the Corporate Debtor on 11.01.2016 for Rs. 49,35,977/- was dishonored due to stop payment instructions. The Operational Creditor issued a notice under Section 138 of the

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## Facts

Inox Air Products Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Twenty First Century Wire Rods Limited (Corporate Debtor). The Operational Creditor and Corporate Debtor entered into a Liquid Supply Agreement (LSA) and Equipment License Agreement (ELA) on 29.03.2012 for the supply of industrial gases. A Revised Agreement was entered on 01.04.2014. The Operational Creditor raised invoices, and a sum of Rs. 4,68,248/- was claimed due under the LSA. The last invoice under the Revised Agreement was issued on 25.12.2015, with Rs. 1,19,13,256/- claimed due. The total outstanding liability, including interest, was Rs. 1,67,81,106/-. The Corporate Debtor acknowledged its liability in emails

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a …

**Ratio:** Section 5(21) of the Insolvency and Bankruptcy Code, 2016 defines 'operational debt' as a

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**Reasoning:** The Adjudicating Authority found that the Operational Creditor had supplied industrial

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**Interpretation:** The definition of operational debt includes claims for goods and services. A

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**Application:** The Corporate Debtor's failure to pay for the supplied gases, as evidenced by

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** Inox Air Products…
- **Respondents:** Twenty First…

## Timeline

- **2012-03-29 — LSA and ELA Ag…**: Inox Air Products Private Limited and Twenty First Century Wire Rods Limited entered into…
- **2014-04-01 — Revised Agr…**: The parties entered…

## 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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