# In the matter of Aryan Ispat And Power Pvt. Ltd.

> NCLT judgment dated 2024-03-22. Citation: TCN-2024-NCLT-01968. The case pertains to an application filed by M/s. Agarwal Coal Corporation Pvt. Ltd., the…

- **Court:** NCLT
- **Order date:** 22 Mar 2024
- **Citation:** TCN-2024-NCLT-01968
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aryan-ispat-and-power-pvt-ltd-097a49db

## Summary

### Background

The case pertains to an application filed by M/s. Agarwal Coal Corporation Pvt. Ltd., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Aryan Ispat and Power Pvt. Ltd. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for goods supplied during the period from 2021 to 2023.

## Facts

M/s. Agarwal Coal Corporation Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Aryan Ispat and Power Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed that it supplied goods to the Corporate Debtor between 2021 and 2023, amounting to Rs. 33,60,06,642.85/-. Out of this amount, the Corporate Debtor paid Rs. 28,62,84,181.69/-, leaving an outstanding amount of Rs. 6,13,48,161.98/-. The Operational Creditor issued a demand notice on 06.07.2023. The Corporate Debtor filed a reply affidavit denying the allegations. The Operational Creditor argued that the outstanding amount included principal (Rs. 4,97,22,461.16/-) and interest

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## Issues and analysis

### Issue 1: Whether the application for initiating CIRP against the Corporate Debtor is admissible under …

**Ratio:** The application under Section 9 of the IBC is admissible if there is a debt and default,

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**Reasoning:** The Adjudicating Authority considered the facts presented by both parties and determined

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

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**Application:** In this case, the Operational Creditor demonstrated that there was an

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** M/s. Agarwal Coal…
- **Respondents:** M/s. Aryan Ispat…

## Timeline

- **2021-01-01 — Supply of…**: Operational Creditor supplied goods to the Corporate Debtor during the period from 2021…
- **2023-07-06 — Demand N…**: Operational Creditor sent a demand notice to the Corporate Debtor for the outstanding…

## 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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