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

> NCLT judgment dated 2022-03-25. Citation: TCN-2022-NCLT-03517. The case involves a petition filed by Harshad V. Vora, an Operational Creditor, against Atharva…

- **Court:** NCLT
- **Order date:** 25 Mar 2022
- **Citation:** TCN-2022-NCLT-03517
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/atharva-metals-pvt-ltd-cp-ib-no-3698-of-2019-639b7926

## Summary

### Background

The case involves a petition filed by Harshad V. Vora, an 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 totaling Rs. 35,29,738/- excluding interest @18 per annum from 01.07.2019, for goods supplied (H.R. Coils & C.R. Coils).

## Facts

Harshad V. Vora, operating as Utkarsh Steel Corporation, is the Operational Creditor. Atharva Metal Pvt. Ltd. is the Corporate Debtor. The Operational Creditor supplied H.R. Coils & C.R. Coils to the Corporate Debtor. Invoices totaling Rs. 38,34,220/- were raised, out of which Rs. 3,04,482/- was paid, leaving a balance of Rs. 35,29,738/-. As per the payment terms, the Corporate Debtor was required to make payments within 45 days of the invoice date. The Corporate Debtor failed to make the outstanding payment. The Operational Creditor sent a Demand Notice under Section 8 of the Code dated 19.07.2019. The Operational Creditor annexed copies of invoices, ledger accounts, email communication, demand notice, auditor's confirmation of accounts, and bank statements to the

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## Issues and analysis

### Issue 1: Whether the Operational Creditor successfully demonstrated the existence of debt and default by the …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, allows an operational creditor to initiate CIRP

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**Reasoning:** The counsel appearing for the Operational Creditor successfully demonstrated and proved

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**Interpretation:** The demonstration of debt and default requires the operational creditor to

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**Application:** In this case, the Operational Creditor provided copies of invoices, ledger

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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…**: Operational Creditor issued a Demand Notice under Section 8 of the Code to the Corporate…
- **2022-01-31 — Ex-parte…**: Corporate Debtor was set ex-parte by the Bench due to failure to file 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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