# In the matter of Velani Roadbuilders India Private Limited CP (IB)2092-MB-C-IV-2019

> NCLT judgment dated 2019-12-10. Citation: TCN-2019-NCLT-00262. The case originates from a Company Petition filed under Section 9 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 10 Dec 2019
- **Citation:** TCN-2019-NCLT-00262
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/velani-roadbuilders-india-private-limited-cp-ib2092-mb-c-iv-2019-15676620

## Summary

### Background

The case originates from a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by JSK Corporation Private Limited, the Operational Creditor, against Velani Roadbuilders India Private Limited, the Corporate Debtor. The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to the Corporate Debtor's failure to pay outstanding dues. The Corporate Debtor allegedly defaulted on payments for the supply of TMT Bar, leading to the filing of the petition before the Adjudicating Authority.

## Facts

JSK Corporation Private Limited (Operational Creditor) filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) against Velani Roadbuilders India Private Limited (Corporate Debtor). The petition was filed on 2019-05-31. The Corporate Debtor allegedly failed to make payment of Rs. 14,81,295/- as principal and Rs. 82,547/- as interest as on 2018-06-12, which was the date of default. The Corporate Debtor had placed a purchase order on 2018-05-05 with the Operational Creditor for the supply of TMT Bar. The Operational Creditor raised Invoice No. 183/18-19 dated 2018-05-05 for Rs. 14,18,295/-. The invoice provided for interest at 24% per annum for delayed payments, but the Operational Creditor demanded interest at 18% per annum. The total

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a debt …

**Ratio:** Section 4(1) of the IBC stipulates a minimum default amount of one lakh rupees for

…

**Reasoning:** The court observed that the Corporate Debtor acknowledged the invoice raised by the

…

**Interpretation:** The IBC requires a clear establishment of default exceeding the minimum

…

**Application:** The court found that the Corporate Debtor was in default of a debt exceeding

…

## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** JSK Corporation…
- **Respondents:** Velani Roadbuilder…

## Timeline

- **2018-05-05 — Purchase…**: The Corporate Debtor placed a purchase order with the Operational Creditor for the supply…
- **2018-05-05 — Invoice R…**: The Operational Creditor raised Invoice…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/velani-roadbuilders-india-private-limited-cp-ib2092-mb-c-iv-2019-15676620