# In the matter of Ajay Protech Private Limited Cp (IB) 108-NCLT-AHM-2021

> NCLT judgment dated 2022-06-01. Citation: TCN-2022-NCLT-02485. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by…

- **Court:** NCLT
- **Order date:** 1 Jun 2022
- **Citation:** TCN-2022-NCLT-02485
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ajay-protech-private-limited-cp-ib-108-nclt-ahm-2021-c042d7bf

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Suresh Kumar Khandelwal, the sole proprietor of G.S. Alloys & Steels, against Ajay Protech Private Limited, the corporate debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). The applicant claimed that the corporate debtor defaulted on payments for goods supplied. The applicant is an authorized dealer of steel under Steel Authority of India Limited. The applicant supplied goods worth Rs. 9,42,50,267/- to the corporate debtor against an advance payment of Rs. 8,00,000/-. The corporate debtor made a total payment of Rs. 8,48,07,675/- during the period from 28.10.2016 to 09.05.2018. Goods worth Rs. 2,54,49,347/- were sold and supplied to the

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## Facts

Suresh Kumar Khandelwal, the sole proprietor of G.S. Alloys & Steels, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Ajay Protech Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The applicant claimed that Ajay Protech Private Limited defaulted on payments for goods supplied. The applicant is an authorized dealer of steel under Steel Authority of India Limited. The applicant supplied goods worth Rs. 9,42,50,267/- to the corporate debtor against an advance payment of Rs. 8,00,000/-. The corporate debtor made a total payment of Rs. 8,48,07,675/- during the period from 28.10.2016 to 09.05.2018. Goods worth Rs. 2,54,49,347/- were sold and supplied to the corporate debtor from its

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The court found that the present application was complete and the applicant was entitled

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**Interpretation:** Section 9 of the IBC provides the framework for an operational creditor to

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**Application:** The applicant provided sufficient documents to prove the debt and default,

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## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** Suresh Kumar…
- **Respondents:** Ajay Protech…

## Timeline

- **2016-10-28 — Advance Payment…**: Applicant received advance…
- **2017-05-17 — Supply of…**: Applicant supplied goods…

## 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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