# In the matter of Uttam Galva Steel Ltd. CP No.45-Mah-2017

> NCLT judgment dated 2017-04-10. Citation: TCN-2017-NCLT-00916. This case involves a company petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 Apr 2017
- **Citation:** TCN-2017-NCLT-00916
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uttam-galva-steel-ltd-cp-no45-mah-2017-6828a1a5

## Summary

### Background

This case involves a company petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IB Code) by operational creditors DF Deutsche Forfait AG (Deutsche) and Misr Bank Europe GmbH (Misr Bank) against Uttam Galva Steels Limited (Uttam). The creditors claim that Uttam defaulted on a payment of USD 16,542,886.33, equivalent to ₹110,40,30,876.44, for 20,000 tons of prime steel billets supplied by AIC Handels GmbH (AIC). The debt was initially assigned to Deutsche by AIC and subsequently assigned to Misr Bank by Deutsche. Uttam received a statutory notice under Section 8 of the IB Code on March 3, 2017, after a 10-day notice period. The corporate debtor (Uttam) is in steel rolls manufacturing dealing with export and import business in relation to steel.

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## Facts

Uttam Galva Steels Ltd. (Uttam) is a company engaged in steel rolls manufacturing. DF Deutsche Forfait AG (Deutsche) and Misr Bank Europe GmbH (Misr Bank) are operational creditors. AIC Handels GmbH (AIC) supplied 20,000 tons of prime steel billets to Uttam. Uttam defaulted on a payment of USD 16,542,886.33 (₹110,40,30,876.44) for the supplied steel billets. The debt was initially assigned to Deutsche by AIC and subsequently assigned to Misr Bank by Deutsche. On August 16, 2013, Uttam entered into a Sales Contract with AIC for the purchase of the steel billets at $540 per MT, totaling $10,800,000 (+/- 10%). The shipment was agreed to be in September 2013, with payment due in 180 days from the Bill of Lading date. Payment was to be made in USD via two Bills of Exchange,

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## Issues and analysis

### Issue 1: Whether the petition is maintainable under Section 9 …

**Ratio:** The maintainability of a petition under Section 9 depends on whether the operational

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**Reasoning:** The court reasoned that the corporate debtor's objections regarding the maintainability

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**Interpretation:** Section 9 of the Insolvency and Bankruptcy Code, 2016 outlines the procedure

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

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** M/s. DF Deutsche…
- **Respondents:** Uttam Galva…; M/s. Uttam Galva…

## Timeline

- **2013-08-16 — Sales Con…**: Uttam entered into a Sales Contract with AIC for the purchase of 20,000 metric tons of…
- **2013-09-16 — Shipment of Steel…**: AIC shipped 19,976 MT…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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