# In the matter of Bindal and Bindal Batteries Private Limited IB No. 199-ND-2018

> NCLT judgment dated 2022-03-10. Citation: TCN-2022-NCLT-03820. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 10 Mar 2022
- **Citation:** TCN-2022-NCLT-03820
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bindal-and-bindal-batteries-private-limited-ib-no-199-nd-2018-6b26515e

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s. H.V.R. Industries Private Limited (the applicant/operational creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Bindal and Bindal Private Limited (the respondent/corporate debtor). The applicant claimed that the corporate debtor had defaulted on payments for goods supplied on credit. The corporate debtor admitted to a partial liability but claimed adjustments for scrap batteries supplied to the applicant. The applicant denied these claims and asserted that the corporate debtor's cheques were dishonored.

## Facts

M/s. H.V.R. Industries Private Limited (applicant) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Bindal and Bindal Private Limited (corporate debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The applicant supplied chemicals on credit to the corporate debtor between 2014-02-17 and 2014-10-03, which were duly received. The corporate debtor made partial payments, with the last payment on 2015-01-14. Three cheques totaling Rs. 25,00,000 issued by the corporate debtor were dishonored on 2015-07-20. The applicant sent a demand notice under Section 8 of the Code on 2017-12-28, which was returned with the remark 'SHIFTED'. The corporate debtor admitted a liability of Rs. 3,10,789 but claimed adjustments for

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## Issues and analysis

### Issue 1: Whether the applicant qualifies as an operational creditor under the Insolvency and Bankruptcy …

**Ratio:** An operational creditor is defined as a person to whom an operational debt is owed and

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**Reasoning:** The court observed that the corporate debtor admitted to receiving goods supplied by the

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**Interpretation:** The court interpreted the definition of 'operational creditor' broadly to

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**Application:** Since the corporate debtor admitted to receiving goods from the applicant, the

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## Parties

- **Judges:** DHARMINDER…; SUMITA PURK…; +1 more
- **Appellants:** M/s. H.V.R.…
- **Respondents:** M/s. Bindal and…

## Timeline

- **2014-02-17 — Goods Supplied…**: Applicant started supplying chemicals…
- **2014-10-03 — Goods Supplied…**: Applicant supplied chemicals on…

## 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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