# In the matter of Jaatvedas Construction Company Pvt. Ltd. C.P. (IB)- 4563 (MB)-2019

> NCLT judgment dated 2022-09-16. Citation: TCN-2022-NCLT-01051. The case involves a petition filed by UltraTech Cement Ltd., the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 16 Sept 2022
- **Citation:** TCN-2022-NCLT-01051
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaatvedas-construction-company-pvt-ltd-cp-ib-4563-mb-2019-87b9a4b1

## Summary

### Background

The case involves a petition filed by UltraTech Cement Ltd., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jaatvedas Construction Co. Pvt. Ltd., the Corporate Debtor. The Operational Creditor claims that the Corporate Debtor defaulted in making payments for the supply of Ready-Mix Concrete (RMC). The Operational Creditor sent demand notices, but the Corporate Debtor failed to pay the outstanding amount. The Corporate Debtor admitted to the default due to business losses during the pandemic.

## Facts

UltraTech Cement Ltd. (Operational Creditor) filed a petition against Jaatvedas Construction Co. Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The Corporate Debtor allegedly defaulted on payments for Ready-Mix Concrete (RMC) supplied by the Operational Creditor. The Operational Creditor provided RMC to the Corporate Debtor based on purchase orders from December 29, 2016, to September 4, 2018. The Operational Creditor raised invoices for the services rendered. A demand notice was sent on August 27, 2019, for Rs. 4,24,68,957/-, including interest. The Corporate Debtor made an initial payment of Rs. 16,29,625/-. A second demand notice was issued on November 26, 2019, for Rs. 4,05,44,443/-, which

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## Issues and analysis

### Issue 1: Whether the Operational Creditor successfully demonstrated the existence of a debt and default by …

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

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**Reasoning:** The court found that the Operational Creditor provided sufficient evidence, including

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**Interpretation:** The legal principle is that an operational creditor can initiate CIRP if they

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**Application:** The court applied the ratio to the facts by considering the ledger records,

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Ultratech Cement…
- **Respondents:** Jaatvedas…
- **Advocates:** Amit Tu…; Sumit K…

## Timeline

- **2016-12-29 — Start of Purcha…**: The Operational Creditor started supplying Ready-Mix Concrete (RMC) to the Corporate…
- **2018-09-04 — End of Purchas…**: The Operational Creditor continued supplying Ready-Mix Concrete (RMC) to the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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