# In the matter of Dalane Industries Pvt. Ltd.

> NCLT judgment dated 2024-02-26. Citation: TCN-2024-NCLT-02388. The case involves a company petition filed by Utkarsh Steel Corporation, the Operational…

- **Court:** NCLT
- **Order date:** 26 Feb 2024
- **Citation:** TCN-2024-NCLT-02388
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dalane-industries-pvt-ltd-9997ea99

## Summary

### Background

The case involves a company petition filed by Utkarsh Steel Corporation, the Operational Creditor, against Dalane Industries Pvt. Ltd., the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor alleges that the Corporate Debtor defaulted on payments for goods supplied. The Corporate Debtor disputes the claim, arguing that the principal amount of the debt is less than the threshold of Rs. 1 crore as per Section 4 of the IBC, 2016.

## Facts

Utkarsh Steel Corporation, the Operational Creditor, filed a company petition against Dalane Industries Pvt. Ltd., the Corporate Debtor, seeking to initiate CIRP. Utkarsh Steel is a trader of B.Q plate, C.R Coils, Steel Coils, MLS plates, and similar products. Dalane Industries is a manufacturer of Progressive Press tools, metal sheets, etc., and a regular purchaser of goods from Utkarsh Steel. From October 2019, Dalane Industries placed orders for goods, and Utkarsh Steel delivered them, raising 19 invoices between 2019-10-15 and 2019-11-21. Despite accepting delivery, Dalane Industries failed to make full payments. After reminders, the outstanding debt amounted to Rs. 1,01,27,176/-, including Rs. 74,85,776/- as the principal debt and Rs. 26,41,400/- as interest at

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is maintainable under Section 9 of the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court considered the submissions and evidence presented by both parties, including

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The court applied Section 9 to the facts, finding that Utkarsh Steel, as an

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## Parties

- **Judges:** Kuldip Kumar…; ANIL RAJ C…
- **Appellants:** M/s Utkarsh Steel…
- **Respondents:** Dalane Industries…; M/s. Dalane…

## Timeline

- **2019-10-01 — Orders P…**: Corporate Debtor placed orders for delivery of goods from the Operational Creditor,…
- **2019-10-15 — Invoices…**: 19 invoices were raised from…

## 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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