# In the matter of Kalundre Metaliks Private Limited

> NCLT judgment dated 2023-08-04. Citation: TCN-2023-NCLT-02156. Prarthna Private Limited, the Operational Creditor, filed a Company Petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 4 Aug 2023
- **Citation:** TCN-2023-NCLT-02156
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kalundre-metaliks-private-limited-ab4cc47f

## Summary

### Background

Prarthna 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 Kalundre Metaliks Private Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor failed to supply H.R. coils for which full payment was made in advance, and also failed to refund the payment. The Operational Creditor sought resolution of an operational debt of Rs. 43,09,32,250/-.

## Facts

Prarthna Private Limited, an Operational Creditor dealing in steel products, filed a petition to initiate CIRP against Kalundre Metaliks Private Limited, the Corporate Debtor. The Operational Creditor placed a purchase order on 2020-09-25 for H.R. coils, amounting to Rs. 45,21,17,000/-, and made full payment in advance via payment letters dated 2020-10-12, 2020-12-21, and 2021-05-03. Due to a downward trend in steel prices, the Corporate Debtor agreed to refund Rs. 1,88,15,000/-. However, the Corporate Debtor failed to supply the materials despite repeated reminders. Notices dated 2022-04-01 and 2022-04-27 were sent demanding payment of outstanding dues of Rs. 43,09,32,250/-, which the Corporate Debtor acknowledged but failed to pay. A demand notice was sent on

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of an operational debt and default …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 defines an operational debt as a claim in

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**Reasoning:** The court reasoned that the Operational Creditor had provided evidence of a purchase

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**Interpretation:** The interpretation of 'operational debt' and 'default' under the IBC is crucial

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**Application:** In this case, the Operational Creditor provided sufficient evidence, including

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** PRARTHNA PRIVATE…
- **Respondents:** KALUNDRE METALIKS…

## Timeline

- **2020-09-25 — Purchase…**: Operational Creditor placed a…
- **2020-10-12 — Payment…**: Operational Creditor made a…

## 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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