# In the matter of Bharat HItech (Cements) Private Limited

> NCLT judgment dated 2024-04-30. Citation: TCN-2024-NCLT-01510. G R Infraprojects Limited, the Operational Creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 30 Apr 2024
- **Citation:** TCN-2024-NCLT-01510
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bharat-hitech-cements-private-limited-1bdfe437

## Summary

### Background

G R Infraprojects Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Bharat Hitech (Cements) Private Limited, the Corporate Debtor, due to unpaid operational debt. The Operational Creditor was engaged as an Engineering Procurement and Construction (EPC) contractor for a project and placed purchase orders for cement with the Corporate Debtor. Disputes arose regarding the quality of cement, leading to requests for refunds of advance payments. The Corporate Debtor failed to fully refund the outstanding amount, leading to the initiation of CIRP.

## Facts

G R Infraprojects Limited (Operational Creditor) was engaged as an EPC contractor for an NHAI project. They placed purchase orders with Bharat Hitech (Cements) Private Limited (Corporate Debtor) for cement. Purchase Order No. 3600149655/1 dated 16.02.2022 was placed for 56000 cement bags, with an advance of Rs. 2,07,19,821/-. Purchase Order bearing no. 3600153204 dated 5 April 2022, was placed for 1,10,000 bags of cement for Rs. 4,40,00,000/-, with an advance of Rs. 4,35,62,850/-. Due to quality issues, the Operational Creditor requested a refund of the advance amount. Bharat Hi-Tech refunded Rs. 1,00,00,000/- on 7 May 2022 and gave cheques for Rs. 3.40 crores. Loose cement worth Rs. 19,54,080/- was supplied and adjusted. An advance amount of Rs. 3,20,68,940/- remained

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## Issues and analysis

### Issue 1: Whether the claim falls under the ambit of an ‘operational debt’ and whether the Petitioner herein …

**Ratio:** Section 5(20) defines ‘Operational Creditor' as a person to whom operational debt is

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**Reasoning:** The court relied on the decision of the Hon'ble Supreme Court in Consolidated

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**Interpretation:** The definition of ‘operational creditor' under the code is not limited only to

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**Application:** The court determined that the advanced amount due from the Corporate Debtor to

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Appellants:** G R Infraprojects…
- **Respondents:** Bharat Hitech…
- **Advocates:** Ashis P…; Shourjyo Mu…; +7 more

## Timeline

- **2022-02-16 — Purchase…**: Operational Creditor placed Purchase Order No. 3600149655/1 for 56000 cement bags with an…
- **2022-04-05 — Purchase…**: Operational Creditor placed Purchase Order bearing no. 3600153204 for 1,10,000 bags of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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