# In the matter of Aanchal Cement Limited CP(IB) No. 145-KB-2021

> NCLT judgment dated 2022-05-18. Citation: TCN-2022-NCLT-02711. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 18 May 2022
- **Citation:** TCN-2022-NCLT-02711
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aanchal-cement-limited-cpib-no-145-kb-2021-061ab184

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Ritu Kejriwal, proprietrix of Shree Krishna Trading Company (Operational Creditor), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Aanchal Cement Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for cement clinker supplied from February 8, 2020, to February 24, 2020. The Corporate Debtor acknowledged the debt and made a partial payment but failed to clear the outstanding dues. The Operational Creditor issued a demand notice on April 15, 2021, which the Corporate Debtor disputed, citing inferior quality of goods and pre-existing disputes.

## Facts

Ritu Kejriwal, operating as Shree Krishna Trading Company, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Aanchal Cement Limited. Shree Krishna Trading Company supplied cement clinker to Aanchal Cement Limited based on purchase orders. The agreement stipulated payment within 15 days, with an 18% interest levy on defaults. Invoices were raised between February 8, 2020, and February 24, 2020, and acknowledged by Aanchal Cement Limited. The principal amount outstanding was ₹2,72,72,184.91. Aanchal Cement Limited defaulted on payments, with the default date stated as February 24, 2020. Shree Krishna Trading Company sent a letter on August 14, 2020, demanding payment. Aanchal Cement Limited acknowledged the debt on

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is maintainable given the Corporate Debtor's …

**Ratio:** The existence of a pre-existing dispute can render a petition under Section 9 of the IBC

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**Reasoning:** The court noted that the Corporate Debtor claimed the goods supplied were of inferior

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**Interpretation:** The court interpreted that a dispute must be substantiated with evidence to be

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**Application:** In this case, the Corporate Debtor's claim of inferior quality was not

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** RITU KEJ…
- **Respondents:** Aanchal Cement…
- **Advocates:** Mainak…; Kanishk Ke…; +3 more

## Timeline

- **2020-02-08 — Invoice Perio…**: Operational Creditor…
- **2020-02-24 — Invoice Period End &…**: Operational Creditor stopped raising invoices and the Corporate Debtor defaulted on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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