# In the matter of Nyka Steels Private Limited CP (IB) No.1009-MB-IV-2020

> NCLT judgment dated 2023-02-03. Citation: TCN-2023-NCLT-04775. The case pertains to an application filed by AJS Impex Private Limited, the Financial…

- **Court:** NCLT
- **Order date:** 3 Feb 2023
- **Citation:** TCN-2023-NCLT-04775
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nyka-steels-private-limited-cp-ib-no1009-mb-iv-2020-0cd6c203

## Summary

### Background

The case pertains to an application filed by AJS Impex Private Limited, the Financial Creditor/Applicant, under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code), seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Nyka Steels Private Limited, the Corporate Debtor. The Operational Creditor claimed a total default of Rs.4,87,01,363/-, comprising a principal amount of Rs.3,09,42,951/- and an interest amount of Rs.1,77,58,412/-. The invoices raised against the supply of goods fell due between 16.02.2018 and 18.08.2018. The Operational Creditor supplied steel products to the Corporate Debtor in 2019 and raised 31 invoices between 16.12.2017 and 18.06.2018 for a total outstanding amount of Rs.3,21,60,135/-, against which the

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## Facts

AJS Impex Private Limited, the Financial Creditor/Applicant, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code), seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Nyka Steels Private Limited, the Corporate Debtor. The Operational Creditor claimed a total default of Rs.4,87,01,363/-, comprising a principal amount of Rs.3,09,42,951/- and an interest amount of Rs.1,77,58,412/-. The invoices raised against the supply of goods fell due between 16.02.2018 and 18.08.2018. The Operational Creditor supplied steel products to the Corporate Debtor in 2019 and raised 31 invoices between 16.12.2017 and 18.06.2018 for a total outstanding amount of Rs.3,21,60,135/-, against which the Operational Creditor

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## Issues and analysis

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

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

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**Reasoning:** The court considered the documents submitted by the applicant, the absence of a reply

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**Interpretation:** Section 9 of the IBC is interpreted to allow for the initiation of CIRP when an

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**Application:** The court applied the provisions of Section 9 of the IBC to the facts of the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** AJS Impex Private…
- **Respondents:** Nyka Steels…

## Timeline

- **2020-02-10 — Board Resolut…**: Date of the Board Resolution authorizing Mr.…
- **2018-02-16 — Invoice Due Da…**: Start date of the period during which invoices…

## 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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