# In the matter of Isitva Steel Private Limited C.P. (IB) No. 650-9-HDB-2019

> NCLT judgment dated 2022-10-19. Citation: TCN-2022-NCLT-00685. The case involves an application filed by M/S Satec Envir Engineering (India) Private Limited,…

- **Court:** NCLT
- **Order date:** 19 Oct 2022
- **Citation:** TCN-2022-NCLT-00685
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/isitva-steel-private-limited-cp-ib-no-650-9-hdb-2019-0a205f02

## Summary

### Background

The case involves an application filed by M/S Satec Envir Engineering (India) Private Limited, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/S Isitva Steel Private Limited, the corporate debtor, alleging default of an operational debt. The applicant is in the business of design, manufacture, supply, and installation of prefabricated and pre-engineered structures. The applicant and respondent entered into a business relationship through three work orders for supply, erection, and commissioning of transmission lines. Work Order No. 1 was completed successfully, and the applicant paid the full amount. With regard to Work Order No. 3, the applicant issued

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## Facts

M/S Satec Envir Engineering (India) Private Limited (the Applicant) filed an application against M/S Isitva Steel Private Limited (the Respondent) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Applicant and Respondent entered into a business relationship involving three work orders for supply, erection, and commissioning of transmission lines. Work Order No. 1 was completed, and the Applicant paid the full amount. For Work Order No. 3, the Applicant issued an advance of Rs. 6,37,200, constituting 20% of the total amount, secured by a post-dated cheque from the Respondent. The Respondent failed to execute Work Order No. 3, and the Applicant presented the cheque, which was

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## Issues and analysis

### Issue 1: Whether there is a debt owed by the Respondent to …

**Ratio:** The Hon'ble Supreme Court, in the case of Consolidated Construction Consortium Limited v.

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**Reasoning:** The Adjudicating Authority considered the submissions of both parties and perused the

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**Interpretation:** The interpretation of 'operational debt' includes advance payments made for the

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**Application:** In this case, the Respondent received advance payments from the Applicant for

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## Parties

- **Judges:** DR.VENKATA…; Veera Brahma Rao…
- **Appellants:** M/S Satec Envir…
- **Respondents:** M/S Isitva Steel…

## Timeline

- **2017-05-18 — Work Ord…**: Work required to be performed under the 1st purchase order, dated 18.05.2017, was duly…
- **2017-06-03 — Work Ord…**: The Applicant had issued purchase order,…

## 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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