# Soubhagya Minerals vs. Nilachakra Metal Processors Pvt. Ltd.

> NCLT judgment dated 2026-09-23. Citation: TCN-2026-NCLT-01057. Soubhagya Minerals (Operational Creditor) filed a Section 9 IBC application against Nilachakra…

- **Court:** NCLT
- **Order date:** 23 Sept 2026
- **Citation:** TCN-2026-NCLT-01057
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-cuttack/soubhagya-minerals-vs-nilachakra-metal-processors-pvt-ltd-rfxb5

## Summary

### Background

Soubhagya Minerals (Operational Creditor) filed a Section 9 IBC application against Nilachakra Metal Processors Pvt. Ltd. (Corporate Debtor) for an operational debt of Rs. 2,85,12,301/- arising from the supply of Iron Ore. The Corporate Debtor disputed the claim, alleging forgery of purchase orders, supply of low-grade material, and a pre-existing dispute, further claiming a settlement had been reached for a much lower amount and that criminal proceedings were initiated against the Operational Creditor's partner.

## Facts

Soubhagya Minerals (Operational Creditor) filed a Section 9 IBC application against Nilachakra Metal Processors Pvt. Ltd. (Corporate Debtor) for an operational debt of Rs. 2,85,12,301/-.

The debt arose from the supply of Iron Ore by Soubhagya Minerals to Nilachakra Metal Processors Pvt. Ltd. between 2019 and 2021, based on various Purchase Orders and Tax Invoices.

The Corporate Debtor made part payments on a running account basis but progressively delayed payments, leaving an outstanding amount.

Soubhagya Minerals issued a Section 8 Demand Notice on 07.03.2024 for Rs. 4,50,60,871/-, which the Corporate Debtor received on 09.03.2024.

The Corporate Debtor responded to the Demand Notice on 18.03.2024, which the Applicant claims admitted the debt.

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## Issues and analysis

### Issue 1: Whether the Applicant has established the existence of an operational debt and default within the …

**Ratio:** The Applicant successfully established the existence of an operational debt arising from

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**Reasoning:** The NCLT noted that the Applicant supplied Iron Ore based on Purchase Orders and raised

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**Interpretation:** An operational debt is established when there is clear evidence of goods

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**Application:** The NCLT applied these principles by examining the documentary evidence

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## Parties

- **Judges:** Sh. Cheekati…; Banwari Lal…
- **Appellants:** Soubhagya M…
- **Respondents:** Nilachakra Metal…
- **Other parties:** Pradeep…; Amiya Kumar…; +4 more
- **Advocates:** Saroj Kumar…; Adhiraj M…; +1 more

## Timeline

- **2019-05-10 to 2021-04-16 — Issuance of Purchase…**: The Corporate Debtor issued various Purchase Orders to the Applicant for the purchase of…
- **2019-05-18 to 2021-05-31 — Supply of Iron Ore and…**: The Applicant supplied Iron Ore to the Corporate Debtor and raised corresponding Tax…

## 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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