# In the matter of Varad Forge Private Limited CP 1605-I&BP-NCLT-MAH-2017

> NCLT judgment dated 2018-11-20. Citation: TCN-2018-NCLT-00297. The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Nov 2018
- **Citation:** TCN-2018-NCLT-00297
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varad-forge-private-limited-cp-1605-ibp-nclt-mah-2017-995af9c9

## Summary

### Background

The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by M/s Madhur Engineers Private Limited, an Operational Creditor, against M/s Varad Forge Private Limited, the Corporate Debtor. The Operational Creditor initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to a default in repayment of Rs. 36,63,816.00, along with an interest amount of Rs. 3,05,351/- at 18% per annum from July 15, 2015, to January 5, 2016, and further interest at 18% per annum from January 6, 2016, until the realization of the claim.

## Facts

M/s Madhur Engineers Private Limited (Operational Creditor) is engaged in the business of trading special purpose carbon/alloy steel and bright bars. M/s Varad Forge Private Limited (Corporate Debtor) approached the Operational Creditor on May 28, 2013, for the supply of various quantities and sizes of forging grade alloy steel. The Operational Creditor agreed to supply the materials for a consideration of Rs. 40,15,593/- and issued tax invoices. The Corporate Debtor defaulted in making the repayment of Rs. 36,63,816.00. The Operational Creditor sent an email dated September 3, 2015, acknowledging the outstanding bills and expressing intentions to pay, but no payment was made. A Demand Notice under Section 8 of the IBC, 2016, was sent on July 4, 2017, and received by

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for

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**Reasoning:** The Tribunal observed that the application made by the Petitioner is complete in all

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**Interpretation:** The completeness of the application is a prerequisite for its admission. The

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**Application:** In this case, the application was deemed complete because the Operational

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** M/s Madhur…
- **Respondents:** M/s Varad Forge…

## Timeline

- **2013-05-28 — Corporate Debtor…**: M/s Varad Forge Private Limited approached M/s Madhur Engineers Private Limited for the…
- **2015-07-15 — Interest Calculation…**: Interest at 18% per annum calculated from…

## 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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