# In the matter of Atharva Metals Pvt. Ltd. CP (IB) No. 3698 OF 2019

> NCLT judgment dated 2022-03-25. Citation: TCN-2022-NCLT-03529. The case pertains to a Company Petition filed by Harshad V. Vora, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 25 Mar 2022
- **Citation:** TCN-2022-NCLT-03529
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/atharva-metals-pvt-ltd-cp-ib-no-3698-of-2019-41115440

## Summary

### Background

The case pertains to a Company Petition filed by Harshad V. Vora, the Operational Creditor, against Atharva Metal Pvt. Ltd., the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Operational Creditor alleged that the Corporate Debtor defaulted in making payment for invoices raised for goods supplied (H.R. Coils & C.R. Coils). The outstanding operational debt was Rs. 35,29,738/- excluding interest at 18% per annum from 01.07.2019. The Operational Creditor issued a demand notice under Section 8 of the Code on 19.07.2019.

## Facts

Harshad V. Vora, the Operational Creditor, filed a Company Petition against Atharva Metal Pvt. Ltd., the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for goods (H.R. Coils & C.R. Coils) supplied. The total outstanding amount was Rs. 35,29,738/- excluding interest at 18% per annum from 01.07.2019. The Operational Creditor had raised invoices totaling Rs. 38,34,220/-, out of which Rs. 3,04,482/- was received. The terms of payment required the Corporate Debtor to make payments within 45 days of the invoice date. A demand notice was sent on 19.07.2019 under Section 8 of the Code. The Corporate Debtor failed to file a reply or make any representation before

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of the operational debt to the Operational …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court considered the invoices, ledger accounts, and demand notice submitted by the

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**Interpretation:** The court interpreted Section 9 of the IBC to mean that if an operational debt

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**Application:** The court applied the ratio to the facts by noting that the invoices were

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## Parties

- **Judges:** H. V. Sub…; Chandra Bha…
- **Appellants:** Harshad V…
- **Respondents:** Atharva Metal…
- **Advocates:** Rajeshwer K…; Anit…; +1 more

## Timeline

- **2019-07-19 — Demand Notice…**: The Operational Creditor issued a Demand Notice to the Corporate Debtor under Section 8…
- **2022-01-31 — Ex-parte…**: The Corporate Debtor was set ex-parte as it failed to file a reply or make any…

## 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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