# In the matter of VHR Enterprises Limited CP (IB) No.210-9-HDB-2019

> NCLT judgment dated 2019-05-17. Citation: TCN-2019-NCLT-03273. M/s. Sujana Universal Industries Limited, the operational creditor, filed a company petition…

- **Court:** NCLT
- **Order date:** 17 May 2019
- **Citation:** TCN-2019-NCLT-03273
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vhr-enterprises-limited-cp-ib-no210-9-hdb-2019-03088360

## Summary

### Background

M/s. Sujana Universal Industries Limited, the operational creditor, filed a company petition against M/s. VHR Enterprises Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The operational creditor claimed that the corporate debtor defaulted on payments for steel products supplied between July and September 2016, amounting to Rs. 58,54,35,126/-. The operational creditor issued a demand notice under Section 8 of the IBC, 2016, on 18.01.2019, demanding payment of the unpaid operational debt. The corporate debtor acknowledged the debt in a balance confirmation letter dated 12.04.2018 and received the demand notice on 21.01.2019

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## Facts

M/s. Sujana Universal Industries Limited (Operational Creditor) supplied steel products to M/s. VHR Enterprises Limited (Corporate Debtor) between July and September 2016. The total amount due for the supplied steel products was Rs. 58,54,35,126/-. The Corporate Debtor acknowledged the debt in a balance confirmation letter dated 12.04.2018. The Operational Creditor issued a demand notice under Section 8 of the IBC, 2016, on 18.01.2019, which was received by the Corporate Debtor on 21.01.2019. The Corporate Debtor neither paid the outstanding amount nor disputed the existence or amount of the debt. The Corporate Debtor filed a memo stating that they had no objection to the initiation of the Corporate Insolvency Resolution Process (CIRP) and the appointment of an Interim

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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 considered the documents submitted by the Operational

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**Interpretation:** Section 9 of the IBC, 2016, provides a mechanism for operational creditors to

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**Application:** In this case, the Operational Creditor provided sufficient evidence of the debt

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** M/s.Sujana…
- **Respondents:** M/s. VHR Enterpris…
- **Advocates:** Mr.K.Purna…; Mr.B.Rama Chander…; +1 more

## Timeline

- **2016-07-01 — Supply of Steel…**: M/s. Sujana Universal Industries Limited supplied steel products to M/s. VHR Enterprises…
- **2018-04-12 — Balance Confi…**: M/s. VHR Enterprises Limited acknowledged the debt in a balance confirmation letter dated…

## 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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