# In the matter of Vivek Steelco Private Limited C.P. No. (IB) 138-9-NCLT-AHM-2020

> NCLT judgment dated 8 Oct 2020. Citation: TCN-2020-NCLT-00423. Mr. Sanjay S. Jaiswal, proprietor of Trigun Enterprise, an operational creditor, filed a…

- **Court:** NCLT
- **Order date:** 8 Oct 2020
- **Citation:** TCN-2020-NCLT-00423
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vivek-steelco-private-limited-cp-no-ib-138-9-nclt-ahm-2020-da1a4903

## Summary

### Background

Mr. Sanjay S. Jaiswal, proprietor of Trigun Enterprise, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s. Vivek Steelco Private Limited, the corporate debtor. The operational creditor claimed an outstanding operational debt of Rs. 19,55,076/-, including interest, for the supply of Round Steel Bars and MS steel bars. The corporate debtor acknowledged the debt but cited a temporary financial crisis as the reason for non-payment and requested more time to clear the dues. The NCLT, Ahmedabad Bench, was tasked with determining whether a default had occurred and if the application for Corporate Insolvency Resolution Process (CIRP) should be admitted.

## Facts

Mr. Sanjay S. Jaiswal, proprietor of Trigun Enterprise, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s. Vivek Steelco Private Limited, the corporate debtor. The operational creditor's firm is engaged in the business of steel bars and has its registered office in Chandkheda, Ahmedabad. The corporate debtor is a private limited company registered under the Companies Act, 1956, with its registered office in Ahmedabad, Gujarat.

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## Issues and analysis

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

**Ratio:** An operational debt exceeding Rs. 1 lakh, as defined under Section 4 of the IBC, is…

**Reasoning:** The court reasoned that the applicant had supplied goods to the corporate debtor and…

**Interpretation:** The court interpreted 'operational debt' broadly to include the principal…

**Application:** Given the invoices and the corporate debtor's acknowledgment of Rs. 19,55,076/-…

## Parties

- **Judges:** Manorama…; Chockalingam…
- **Advocates:** For the Petitioner…; For the Respondent…

## Timeline

- **June 29, 2017 — Supply of goo…**: The applicant supplied Round Steel Bars…
- **June 30, 2017 — Supply of goo…**: The applicant completed the supply of Round Steel Bars and MS steel bars 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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