# In the matter of Nipman Fastners Industries Pvt. Ltd. Company Petition No. IB-908(ND)-2022

> NCLT judgment dated 2023-04-21. Citation: TCN-2023-NCLT-03687. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 21 Apr 2023
- **Citation:** TCN-2023-NCLT-03687
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nipman-fastners-industries-pvt-ltd-company-petition-no-ib-908nd-2022-9daef35c

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, by M/s. Joneja Bright Steels Pvt Ltd (the Applicant) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Nipman Fastners Industries Pvt Ltd (the Corporate Debtor). The Applicant claimed that the Corporate Debtor defaulted on payments for the supply of steel wires. The total outstanding amount claimed by the Applicant was Rs. 6,28,91,648/-, including interest at 18% per annum till 30.09.2022. The Corporate Debtor acknowledged its dues and made some payments, but a significant amount remained outstanding.

## Facts

M/s. Joneja Bright Steels Pvt Ltd (Applicant) filed a petition under Section 9 of the IBC, 2016, against M/s. Nipman Fastners Industries Pvt Ltd (Corporate Debtor) for defaulting on payments for the supply of steel wires. The Applicant claimed an outstanding amount of Rs. 6,28,91,648/- including interest at 18% per annum till 30.09.2022. The Applicant supplied steel wires worth Rs. 3,49,33,765/- to the Corporate Debtor's plants in Bawal, Ghaziabad, and Haridwar. The invoices were acknowledged by the Corporate Debtor. The terms of the invoices stipulated an 18% per annum interest charge on delayed payments. The Applicant maintained a ledger of the Corporate Debtor's account. The Corporate Debtor made some payments but failed to clear the outstanding dues. The Applicant

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## Issues and analysis

### Issue 1: Whether the application filed by M/s. Joneja Bright Steels Pvt Ltd under Section 9 of the IBC, …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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

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**Interpretation:** Section 9 provides the mechanism for an operational creditor to trigger the

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** M/s. Joneja…
- **Respondents:** M/s. Nipman…

## Timeline

- **2020-01-01 — Reminders sent by…**: The Applicant sent several reminders to the Corporate Debtor in the year 2020 regarding…
- **2021-01-01 — Reminders sent by…**: The Applicant sent several reminders to the Corporate Debtor in the year 2021 regarding…

## 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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