# In the matter of APL Metals Limited

> NCLT judgment dated 2024-01-09. Citation: TCN-2024-NCLT-03222. Sri Jaiprakash Jaiswal, the Sole Proprietor of OM Traders, filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 9 Jan 2024
- **Citation:** TCN-2024-NCLT-03222
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/apl-metals-limited-4b37fca0

## Summary

### Background

Sri Jaiprakash Jaiswal, the Sole Proprietor of OM Traders, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against APL Metals Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default of Rs. 2,14,99,995.73, including principal and interest. The Corporate Debtor contested the application, citing an ongoing Income Tax Department investigation into alleged bogus purchases by the Operational Creditor.

## Facts

Sri Jaiprakash Jaiswal, the Sole Proprietor of OM Traders (Operational Creditor), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against APL Metals Limited (Corporate Debtor), seeking initiation of CIRP. The Operational Creditor claimed a default of Rs. 2,14,99,995.73, including principal and interest calculated up to 28.02.2022. The default allegedly occurred between 24.11.2021 and 24.12.2021, based on invoices raised by the Corporate Debtor. The Corporate Debtor argued that the invoices were raised against purchase orders placed in November and December 2021. The Corporate Debtor further submitted that the Income Tax Department conducted a search and seizure operation on December 07, 2021, and subsequent dates, and raised concerns

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## Issues and analysis

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

**Ratio:** The principle is that if a debt is genuinely disputed, it cannot be considered an

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**Reasoning:** The NCLT reasoned that the Income Tax Department's investigation into alleged bogus

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**Interpretation:** This interpretation emphasizes that the existence of a genuine dispute,

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**Application:** In this case, the NCLT applied the principle by considering the Income Tax

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Jaiprakash…
- **Respondents:** APL Metals…

## Timeline

- **2021-11-01 — Corporate Debtor…**: The Corporate Debtor approached the…
- **2021-11-23 — Purchase Order…**: The Corporate Debtor placed six purchase orders upon the Operational Creditor. Purchase…

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