# In the matter of APL Metals Limited

> NCLT judgment dated 2024-01-09. Citation: TCN-2024-NCLT-03231. 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-03231
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/apl-metals-limited-5f080157

## 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). The Operational Creditor claimed a default of Rs. 2,14,99,995.73, including a principal amount of Rs. 2,08,62,129/- and interest of Rs. 6,37,866.73/- as on 28.02.2022. The default allegedly occurred between 24.11.2021 and 24.12.2021, based on invoices raised by the Corporate Debtor. The Demand Notice in Form – 3 dated 01.03.2022, was served on the Corporate Debtor on 02.03.2022. The Corporate Debtor argued that the Income Tax Department was investigating the Operational Creditor for bogus purchases. The Income Tax Department's assessment order dated 30.12.2022

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## Issues and analysis

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

**Ratio:** The existence of a genuine dispute regarding the debt, as evidenced by an ongoing

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

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**Interpretation:** The court interpreted the provisions of the I&B Code to mean that the

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**Application:** In this case, the Income Tax Department's investigation into alleged bogus

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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 Operational Creditor for the supply of lead ingots in…
- **2021-11-23 — Purchase Order…**: The Corporate Debtor placed purchase orders on…

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