# In the matter of Vedika Steels Private Limited CP(IB) No.348-9-HDB-2018

> NCLT judgment dated 2018-11-01. Citation: TCN-2018-NCLT-00409. The case involves a Company Petition filed by BS Limited (Operational Creditor) against Vedika…

- **Court:** NCLT
- **Order date:** 1 Nov 2018
- **Citation:** TCN-2018-NCLT-00409
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vedika-steels-private-limited-cpib-no348-9-hdb-2018-16dac87e

## Summary

### Background

The case involves a Company Petition filed by BS Limited (Operational Creditor) against Vedika Steels Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that it had been supplying Iron & Steel (MS Angles) to the Corporate Debtor on credit basis, but the Corporate Debtor had not made any payments against the pending invoices since March 2016. The value of the unpaid bills had mounted to Rs. 97,41,35,501/- as on 31.08.2016. The Operational Creditor stopped supplying the goods and demanded payment. The Corporate Debtor requested time for payments but never cleared the dues. The Operational Creditor's Directors visited the Corporate Debtor's office to pursue recovery amicably. The Corporate

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## Facts

BS Limited, the Operational Creditor, filed a Company Petition against Vedika Steels Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. BS Limited claimed that it supplied Iron & Steel (MS Angles) to Vedika Steels on credit. From March 2016, Vedika Steels failed to make payments against pending invoices. As of August 31, 2016, the unpaid bills amounted to Rs. 97,41,35,501. BS Limited stopped supplying goods and demanded payment. Vedika Steels requested time for payment but did not clear the dues. BS Limited's directors visited Vedika Steels' office to recover dues. Vedika Steels, in response to a demand notice dated 2018-05-28, informed BS Limited about its financial difficulties. The Operational Creditor filed a

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## Issues and analysis

### Issue 1: Whether the petition 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 Adjudicating Authority perused the material on record and heard the submissions of

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** In this case, the Operational Creditor presented evidence of unpaid invoices

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** BS L…
- **Respondents:** Vedika Steels Pvt…

## Timeline

- **2016-03-01 — Default in P…**: The Corporate Debtor started defaulting…
- **2016-08-31 — Amount of Unpa…**: The value of unpaid bills…

## 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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