# In the matter of Metal Engineering and Treatment Co. Pvt. Ltd. IA(I.B.C)-109-KB-2019 in C.P (IB) No.1378-KB-2018

> NCLT judgment dated 2022-02-11. Citation: TCN-2022-NCLT-04186. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 11 Feb 2022
- **Citation:** TCN-2022-NCLT-04186
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/metal-engineering-and-treatment-co-pvt-ltd-iaibc-109-kb-2019-in-cp-ib-no1378-kb-0ee820e1

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by M+R Logistics (India) Private Limited (Operational Creditor) against M/s Metal Engineering & Treatment Private Limited (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP) due to outstanding operational debt. The Operational Creditor claims that the Corporate Debtor owes a sum of Rs. 48,11,763/- as outstanding operational debt, which fell due from September 15, 2018. This debt includes Rs. 34,78,004/- for services provided and Rs. 13,33,759/- as interest. The Corporate Debtor filed a demurrer application seeking dismissal of the CIRP application, alleging gross suppression of material facts and claiming that the parties had

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## Facts

M+R Logistics (India) Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Metal Engineering & Treatment Private Limited (Corporate Debtor) for outstanding operational debt. The Operational Creditor claimed that the Corporate Debtor owed Rs. 48,11,763/-, including Rs. 34,78,004/- for services rendered based on four invoices and Rs. 13,33,759/- as interest. The debt fell due from September 15, 2018. The Operational Creditor issued a demand notice on April 30, 2018. The Corporate Debtor filed a demurrer application, CA(IB) No. 109/2019, seeking dismissal of the CIRP application, claiming a settlement agreement in December 2016 for Rs. 81,00,000/- payable in installments. The Corporate

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

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

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**Reasoning:** The court considered the submissions and evidence presented by both parties, including

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover outstanding

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**Application:** The court found that the Operational Creditor had met the requirements of

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## Parties

- **Judges:** Rohit K…; Harish Chander…; +1 more
- **Appellants:** M+R Logistics…
- **Respondents:** M/s Metal…
- **Advocates:** Aritra…; Sanjiv Kumar…; +1 more

## Timeline

- **2016-04-07 — Shipment of…**: Shipment of goods from Nava Sheva Port to Kuwait where the Operational Creditor acted as…
- **2016-06-14 — Invoice…**: Dates of the four invoices for which…

## 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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