# In the matter of Fraser and Company Limited

> NCLT judgment dated 2023-08-01. Citation: TCN-2023-NCLT-02237. Hella Infra Market Private Limited, the operational creditor, filed a company petition under…

- **Court:** NCLT
- **Order date:** 1 Aug 2023
- **Citation:** TCN-2023-NCLT-02237
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fraser-and-company-limited-0f7d3a09

## Summary

### Background

Hella Infra Market Private Limited, the operational creditor, filed a company petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Fraser and Company Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on a payment of Rs. 1,24,83,600/-, including interest at 24% per annum, for the supply of Ready-Mix Concrete (RMC) and slurry. The corporate debtor argued that the application was not maintainable under Section 10A of the Code, as the invoices fell within the period covered by that section.

## Facts

Hella Infra Market Private Limited (Operational Creditor) filed a petition against Fraser and Company Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The Operational Creditor claimed a default of Rs. 1,24,83,600/- including interest at 24% per annum. The Corporate Debtor placed four purchase orders for Ready-Mix Concrete (RMC) and slurry on 17.03.2020, 30.06.2020, 01.07.2020, and 18.07.2020. The Operational Creditor supplied the materials and raised invoices aggregating to Rs. 1,84,58,223/-, out of which the Corporate Debtor paid Rs. 84,31,227/-, leaving a balance of Rs. 1,00,26,996/-. The Operational Creditor issued a demand notice on 20.08.2021, which the Corporate Debtor replied to on 28.08.2021,

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## Issues and analysis

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

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code prohibits the initiation of CIRP under

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**Reasoning:** The court reasoned that the invoices raised by the Operational Creditor fell due for

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**Interpretation:** Section 10A provides a bar on initiating CIRP under Section 9 for defaults

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**Application:** The court applied Section 10A to the facts of the case, determining that the

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Hella Infra…
- **Respondents:** Fraser and…

## Timeline

- **2020-03-17 — First Purchas…**: Respondent placed its first Purchase Order for the supply of various grades of Ready-Mix…
- **2020-06-30 — Second Purcha…**: Respondent raised Second Purchase…

## 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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