# In the matter of Nucleus Satellite Communications (Madras) Pvt. Ltd. CP(IB)-297(CHE)-2021

> NCLT judgment dated 2022-10-14. Citation: TCN-2022-NCLT-00749. Posco India Processing Center Pvt Ltd, the Operational Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 14 Oct 2022
- **Citation:** TCN-2022-NCLT-00749
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nucleus-satellite-communications-madras-pvt-ltd-cpib-297che-2021-8391ef13

## Summary

### Background

Posco India Processing Center Pvt Ltd, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Nucleus Satellite Communications (Madras) Pvt Ltd, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for the supply of steel coils and sheets. The application was filed due to the non-payment of outstanding dues despite repeated promises and settlement talks.

## Facts

Posco India Processing Center Pvt Ltd (Operational Creditor) supplied 927.140 metric tonnes of steel coils and sheets to Nucleus Satellite Communications (Madras) Pvt Ltd (Corporate Debtor) for use in its factory in Chittoor. The Corporate Debtor accepted the supplies without demur and used them in its business. Payments became due on various dates, with the last payment received on 01.09.2020. The Corporate Debtor acknowledged the outstanding debt and promised to make payments from December 2019 onwards, but no substantial amount was received. The Operational Creditor issued a demand notice under Section 8 of the IBC, 2016, on 01.11.2021, which was delivered on 09.11.2021. The Corporate Debtor failed to pay the debt and gave a vague reply on 17.11.2021. The

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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(5) of the IBC, 2016, states that the Adjudicating Authority shall admit the

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**Reasoning:** The Tribunal found that the application was complete and met the requirements of Section

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**Interpretation:** Section 9 of the IBC provides the procedure for an operational creditor to

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**Application:** The Tribunal applied Section 9 of the IBC to the facts of the case and found

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## Parties

- **Judges:** (RETD.) RAMALINGAM…; SAMEER…
- **Appellants:** Posco India…
- **Respondents:** Nucleus Satellite…

## Timeline

- **2021-11-25 — Application…**: Posco India Processing Center Pvt Ltd filed an application under Section 9 of the IBC,…
- **2022-02-04 — Appearance of Corporate…**: The Corporate Debtor appeared through its…

## 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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