# In the matter of Cesare Bonetti International Pvt. Ltd.

> NCLT judgment dated 2024-05-01. Citation: TCN-2024-NCLT-01494. M/s Flowjet Valves Private Limited, the Operational Creditor, filed a Company Petition seeking…

- **Court:** NCLT
- **Order date:** 1 May 2024
- **Citation:** TCN-2024-NCLT-01494
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cesare-bonetti-international-pvt-ltd-448378c6

## Summary

### Background

M/s Flowjet Valves Private Limited, the Operational Creditor, filed a Company Petition seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Cesare Bonetti International Pvt. Ltd., the Corporate Debtor, on 2022-10-01. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for default in payment of an operational debt amounting to Rs. 1,19,29,233/-, which included a principal amount and interest, with the interest component being Rs. 52,78,498/-.

## Facts

The Operational Creditor, M/s Flowjet Valves Private Limited, is in the business of manufacturing and supplying valves since 2018. The Corporate Debtor, M/s Cesare Bonetti International Pvt. Ltd., approached the Operational Creditor for the manufacture and supply of valves. Invoices were raised from 2018-12-29 to 2020-01-28, and the Operational Creditor claimed a total debt of Rs. 1,19,29,233/-, including a principal amount and interest of Rs. 52,78,498/-. The Operational Creditor sent a demand notice on 2022-04-18, claiming default from 2020-02-27. The Corporate Debtor acknowledged the invoices but disputed the interest component, arguing that it was not agreed upon and that the inclusion of interest would bring the claim below the minimum threshold of Rs. 1 crore.

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## Issues and analysis

### Issue 1: Whether the interest component can be included in the operational debt for the purpose of meeting …

**Ratio:** The definition of Operational Debt as per the Code does not expressly include

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**Reasoning:** The Corporate Debtor argued that the interest component should not be included in the

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**Interpretation:** The interpretation of the definition of 'Operational Debt' under the IBC is

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**Application:** The NCLT applied this principle to the facts of the case, considering whether

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** M/s Flowjet…
- **Respondents:** M/s Cesare…

## Timeline

- **2018-01-01 — Business Relationship…**: The Operational Creditor started manufacturing and supplying valves to the Corporate…
- **2018-12-29 — Invoice Perio…**: Start date of the period during which invoices…

## 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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