# In the matter of Uttarayan Steel Private Limited Company Petition (IB)No. 408-ALD-2019

> NCLT judgment dated 2021-08-25. Citation: TCN-2021-NCLT-01288. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 25 Aug 2021
- **Citation:** TCN-2021-NCLT-01288
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/uttarayan-steel-private-limited-company-petition-ibno-408-ald-2019-f0b40c74

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Shree Padmavati Steel Traders (Operational Creditor) against Uttarayan Steel Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor approached the Operational Creditor to buy sponge iron, with payment terms of 30 days from delivery, and an 18% per annum interest on delays. The Operational Creditor raised invoices totaling Rs. 1,13,38,392. The Corporate Debtor made partial payments totaling Rs. 28,00,000. The Corporate Debtor failed to pay the outstanding amount of Rs. 1,04,38,392 despite reminders. The Operational Creditor issued a demand notice under Section 8 of the IBC, which was received by the Corporate

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## Facts

Shree Padmavati Steel Traders, the operational creditor, supplied sponge iron to Uttarayan Steel Private Limited, the corporate debtor, under an agreement stipulating payment within 30 days of delivery, with an 18% annual interest on delayed payments. The operational creditor raised invoices totaling Rs. 1,13,38,392. The corporate debtor made partial payments amounting to Rs. 28,00,000. Despite reminders, the corporate debtor failed to pay the outstanding balance of Rs. 1,04,38,392. A demand notice was issued under Section 8 of the Insolvency and Bankruptcy Code (IBC) and was received by the corporate debtor. The corporate debtor did not raise any dispute or make further payments. The operational creditor then filed a petition under Section 9 of the IBC for initiation

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** Section 9(5) of the IBC specifies the conditions for admitting an application for

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**Reasoning:** The Adjudicating Authority found that the application was complete as the petitioner

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**Interpretation:** Section 9(5) of the IBC provides a checklist for the Adjudicating Authority to

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**Application:** The court determined that the application was complete, satisfying the

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** M/S SHREE…
- **Respondents:** UTTARAYAN STEEL…
- **Advocates:** Aishwarya Pratap…

## Timeline

- **2016-07-14 — Partial Payment by…**: The corporate debtor made a payment of Rs.…
- **2016-09-21 — Partial Payment by…**: The corporate debtor made a payment of Rs.…

## 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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