# In the matter of Forge India Private Limited CP (IB) No. 588-Chd-HP-2019

> NCLT judgment dated 2022-01-12. Citation: TCN-2022-NCLT-04451. M/s BMSS Steel Industries Private Limited filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 12 Jan 2022
- **Citation:** TCN-2022-NCLT-04451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/forge-india-private-limited-cp-ib-no-588-chd-hp-2019-ad428991

## Summary

### Background

M/s BMSS Steel Industries Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Forge India Private Limited, the Corporate Debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). The petitioner claimed that the corporate debtor defaulted in payment of dues for the supply of 'Alloy Steel Forged Bar'. The petitioner issued a demand notice under Section 8 of the IBC, 2016, which was duly served to the corporate debtor. The corporate debtor admitted to the outstanding payment to the extent of the principal amount only but claimed financial unviability.

## Facts

M/s BMSS Steel Industries Private Limited (the Petitioner), an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s Forge India Private Limited (the Corporate Debtor) for defaulting on payments for the supply of 'Alloy Steel Forged Bar'. The Petitioner claimed that invoices dated 21.06.2018 for ₹1,06,519/- and 14.08.2018 for ₹2,14,559/-, along with interest of ₹50,301/- and legal expenses of ₹50,000/-, totaling ₹4,21,379/-, were outstanding. A demand notice was issued on 03.05.2019 under Section 8 of the IBC. The Corporate Debtor, in its reply dated 15.12.2021, admitted the outstanding payment to the extent of the principal amount only but claimed financial unviability. The petition was filed on

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## Issues and analysis

### Issue 1: Whether the demand notice in Form No.3 …

**Ratio:** A demand notice served via speed post at the registered address of the Corporate Debtor

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**Reasoning:** The court observed that the demand notice was delivered via speed post to the registered

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**Interpretation:** The legal interpretation is that serving a demand notice through speed post to

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**Application:** Since the demand notice was sent via speed post to the registered address of

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** M/s. BMSS Steel…
- **Respondents:** M/s Forge India…

## Timeline

- **2018-06-21 — Invoice…**: Invoice dated 21.06.2018…
- **2018-08-14 — Invoice…**: Invoice dated 14.08.2018…

## 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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