# In the matter of Brilliant Metals Private Limited IB-3151(ND)-2019

> NCLT judgment dated 2022-06-20. Citation: TCN-2022-NCLT-02175. The case involves an application filed by M/s. Oyster Steel and Iron Private Limited, the…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-02175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/brilliant-metals-private-limited-ib-3151nd-2019-0b0b076a

## Summary

### Background

The case involves an application filed by M/s. Oyster Steel and Iron Private Limited, the operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Brilliant Metals Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for copper wire rods supplied on credit. The corporate debtor contested the application, raising objections regarding the maintainability of the petition, limitation, and the nature of the transaction.

## Facts

M/s. Oyster Steel and Iron Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Brilliant Metals Private Limited (Corporate Debtor). The Operational Creditor claimed that they supplied copper wire rods worth Rs. 10,58,62,877/- to the Corporate Debtor on credit between 09.05.2015 and 30.06.2015, with an understanding that payments would be made within 120 days. The Operational Creditor alleged that Rs. 5,15,41,000/- remained unpaid. The Corporate Debtor made various on-account payments, with the last payment of Rs. 24,00,000/- received on 15.03.2018. The Corporate Debtor denied the debt, stating that debit notes were issued for

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The proceeding under Section 9 of the I&B Code can only be initiated after delivery

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**Reasoning:** The NCLT observed that the operational creditor had not filed a copy of the bank

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** In this case, the NCLT found that the operational creditor failed to provide

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## Parties

- **Judges:** SHRI. DHARMINDER…; SUMITAPURKA…
- **Appellants:** M/s. Oyster Steel…
- **Respondents:** M/s Brilliant…

## Timeline

- **2015-05-09 — Start of Transaction…**: Operational creditor supplied copper wire…
- **2015-06-30 — End of Transaction…**: Operational creditor supplied copper wire…

## 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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