# In the matter of B.E. Billimoria and Company Limited

> NCLT judgment dated 2024-12-05. Citation: TCN-2024-NCLT-00097. This case involves an Interlocutory Application (IA) filed by Vikrant Ispat Udyog, the…

- **Court:** NCLT
- **Order date:** 5 Dec 2024
- **Citation:** TCN-2024-NCLT-00097
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/be-billimoria-and-company-limited-ce07be08

## Summary

### Background

This case involves an Interlocutory Application (IA) filed by Vikrant Ispat Udyog, the Applicant/Operational Creditor (OC), seeking the restoration of C.P. No. 1544/MB/2017 (Main Application) against B.E. Billimoria and Company Limited, the Respondent/Corporate Debtor (CD). The Main Application was initially disposed of on 25.01.2019 due to an amicable settlement between the parties regarding the debt amount. The Applicant/OC is now seeking to revive the Main Application and initiate the Corporate Insolvency Resolution Process (CIRP) against the CD, citing a breach of the settlement terms. The original default was based on unpaid invoices for supplied goods. The CD had initially made payments but later defaulted, leading to the OC filing the Main Application under

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## Facts

Vikrant Ispat Udyog (OC) supplied iron products to B.E. Billimoria and Company Limited (CD) between 25.08.2015 and 19.12.2015. The CD initially made payments but defaulted, with the last payment on 09.05.2016. The OC issued a demand notice under Section 8 of IBC for Rs. 98,79,591/-, which the CD denied. The OC filed C.P. (IB) No. 1544/MB/2017 on 03.11.2017. During the pendency of the Main Application, the CD paid Rs. 51,00,011/-, leaving a balance of Rs. 47,79,580/-. The parties entered into a settlement, and the Tribunal disposed of the Main Application on 25.01.2019, with a payment schedule and a 12% p.a. interest rate on delayed payments. The CD challenged the Settlement Order before NCLAT, which was rejected on 11.02.2020. The CD failed to make further payments as

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## Issues and analysis

### Issue 1: Whether the outstanding claims of the Applicant/OC amount to an operational debt under Section …

**Ratio:** The AA has the authority to determine whether there exists operational debt or not in a

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**Reasoning:** The court reasoned that the settlement agreement did not extinguish the original

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**Interpretation:** The interpretation is that a settlement agreement does not automatically

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**Application:** The court applied this principle to the facts by stating that the Main

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** VIKRANT ISPAT…
- **Respondents:** B.E. Billimoria &…; B.E. BILLIMORIA…

## Timeline

- **2015-08-25 — Supply of Iron…**: OC supplied iron products to CD…
- **2016-05-09 — Last Paymen…**: CD made its last payment of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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