# In the matter of Vicor Stainless Private Limited C.P. No. (IB) 98-9-NCLT-AHM-2020

> NCLT judgment dated 2020-03-12. Citation: TCN-2020-NCLT-01581. The case involves an application filed by Mr. Bhupindersingh Banga, director of M/s. Banga Iron…

- **Court:** NCLT
- **Order date:** 12 Mar 2020
- **Citation:** TCN-2020-NCLT-01581
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vicor-stainless-private-limited-cp-no-ib-98-9-nclt-ahm-2020-e9c4fca7

## Summary

### Background

The case involves an application filed by Mr. Bhupindersingh Banga, director of M/s. Banga Iron & Steel Private Limited, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Vicor Stainless Private Limited, the corporate debtor, for operational debt. The operational creditor claimed that the corporate debtor approached them in 2019 and placed purchase orders for the supply of rolling mill machinery and equipment. The operational creditor supplied the goods and raised invoices amounting to Rs. 18,52,600/-. The corporate debtor failed to make the payment despite repeated reminders. The operational creditor issued a demand notice under Section 8 of the I&B Code on December 14, 2019.

## Facts

M/s. Banga Iron & Steel Private Limited (the operational creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Vicor Stainless Private Limited (the corporate debtor). The operational creditor claimed that the corporate debtor approached them in 2019 and placed purchase orders for the supply of rolling mill machinery and equipment. The operational creditor supplied the goods and raised invoices amounting to Rs. 18,52,600/-. The corporate debtor failed to make the payment despite repeated reminders. The operational creditor issued a demand notice under Section 8 of the I&B Code on December 14, 2019. The corporate debtor admitted the debt in a letter dated December 18, 2019, and in a 'confirmation of accounts'

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## Issues and analysis

### Issue 1: Whether there is an 'operational debt' …

**Ratio:** Section 4 of the Insolvency and Bankruptcy Code, 2016 defines operational debt and

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**Reasoning:** The Adjudicating Authority examined the invoices and other documents submitted by the

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**Interpretation:** The term 'operational debt' is interpreted as a debt in respect of the

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**Application:** The Adjudicating Authority applied the definition of 'operational debt' to the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Banga Iron &…
- **Respondents:** Vicor Stainless…
- **Advocates:** Yuvraj Th…; Gunjan…; +2 more

## Timeline

- **2019-01-01 — Corporate Debtor…**: The corporate debtor approached the operational creditor and placed various purchase…
- **2019-12-14 — Demand Notice…**: The operational creditor issued a demand notice under Section 8 of the I&B Code to the…

## 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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