# In the matter of Castall Technologies Pvt. Ltd. CP (IB) No. 229-9-HDB-2021

> NCLT judgment dated 2022-04-19. Citation: TCN-2022-NCLT-03221. The case originates from a petition filed by Sunland Alloys, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 19 Apr 2022
- **Citation:** TCN-2022-NCLT-03221
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/castall-technologies-pvt-ltd-cp-ib-no-229-9-hdb-2021-b22341e7

## Summary

### Background

The case originates from a petition filed by Sunland Alloys, an operational creditor, against Castall Technologies Pvt Ltd, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. Sunland Alloys claimed that Castall Technologies defaulted on payments for supplied aluminum alloy ingots. The operational creditor alleged that an aggregate amount of Rs. 1,94,46,090/- was due and payable as of 26.06.2021. The corporate debtor, while not disputing the debt, cited COVID-19 and other circumstances for its business downfall and disputed the 18% interest rate. The operational creditor contended that the corporate debtor never replied to the demand notice.

## Facts

Sunland Alloys, an operational creditor and a partnership firm registered under the Indian Partnership Act, 1932, supplied aluminum alloy ingots to Castall Technologies Pvt Ltd, the corporate debtor. Castall Technologies, engaged in the production of high-precision non-ferrous die castings and CNC machine parts, defaulted on payments for these supplies. The operational creditor claimed that an aggregate amount of Rs. 1,94,46,090/- was due and payable as of 26.06.2021, including a principal amount of Rs. 1,44,67,983/- and interest at 18% per annum amounting to Rs. 49,78,107/-. The corporate debtor acknowledged business dealings with the operational creditor from 20.02.2014, with a total purchase value of Rs. 22,90,92,416/-, but cited COVID-19 and market conditions as

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## Issues and analysis

### Issue 1: Whether there is an 'operational debt' as …

**Ratio:** The threshold for initiating CIRP under Section 9 of the IBC requires the existence of an

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**Reasoning:** The NCLT determined that the operational debt claimed by Sunland Alloys satisfied the

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**Interpretation:** The operational debt must be clearly defined and exceed the specified threshold

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**Application:** In this case, the operational debt claimed by Sunland Alloys was Rs.

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Sunland A…
- **Respondents:** Castall Technologi…

## Timeline

- **2014-02-20 — Business Comm…**: Business dealings between the Corporate…
- **2021-02-27 — Demand Notice…**: Operational Creditor issued a statutory Demand Notice under section 8 of the I&B Code,…

## 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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