# In the matter of A.G. Pipes Pvt. Ltd.

> NCLT judgment dated 2024-07-12. Citation: TCN-2024-NCLT-01024. Bhushan Power & Steel Limited, the operational creditor, filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 12 Jul 2024
- **Citation:** TCN-2024-NCLT-01024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ag-pipes-pvt-ltd-d58244d5

## Summary

### Background

Bhushan Power & Steel Limited, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against A.G. Pipes Pvt. Ltd., the corporate debtor, for defaulting on a payment of Rs. 2,14,71,017.1/-. The corporate debtor argued that the application was not maintainable under Section 4 of the IBC, 2016, as the principal amount of the operational debt was less than 1 Crore. The operational creditor contended that the total debt due was Rs. 2,14,71,017.1 as of 30.09.2021, including principal and interest. The corporate debtor also argued that the invoices were raised in the name of A.G. Pipes, a sole proprietorship, and not A.G. Pipes Pvt. Ltd., the corporate debtor.

## Facts

Bhushan Power & Steel Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against A.G. Pipes Pvt. Ltd. (Corporate Debtor) for defaulting on a payment. The Operational Creditor claimed a total debt of Rs. 2,14,71,017.1/- as of 30.09.2021, including a principal amount of Rs. 1,49,04,757/- and interest of Rs. 65,66,260.07/-. The Corporate Debtor argued that the application was not maintainable under Section 4 of the IBC, 2016, because the principal amount of the operational debt was less than 1 Crore. The Corporate Debtor also contended that the invoices were raised in the name of A.G. Pipes, a sole proprietorship, and not A.G. Pipes Pvt. Ltd., the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** The minimum threshold limit of Rs. 1 Crore as laid down under Section 4 of the Code is a

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**Reasoning:** The court observed that the debt claimed in the Demand Notice dated 07.10.2021 was Rs.

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**Interpretation:** Section 4 of the IBC, 2016, as amended, specifies the minimum threshold for

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**Application:** In the present case, the court found that the invoices raised in the name of

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** Bhushan Power &…
- **Respondents:** A.G. Pipes Pvt.…

## Timeline

- **2008-06-06 — Incorporation of…**: A.G. Pipes Private Limited was incorporated under the provisions of the Companies Act,…
- **2021-12-16 — Filing of P…**: The present petition was filed before the Adjudicating authority by Ms. Garima Vashist,…

## 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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