# In the matter of Orbit Ayas Private Limited

> NCLT judgment dated 2023-06-22. Citation: TCN-2023-NCLT-02851. Naresh Steel Industries Private Limited, the Operational Creditor/Applicant, filed an…

- **Court:** NCLT
- **Order date:** 22 Jun 2023
- **Citation:** TCN-2023-NCLT-02851
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/orbit-ayas-private-limited-1380263f

## Summary

### Background

Naresh Steel Industries Private Limited, the Operational Creditor/Applicant, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Orbit Ayas Private Limited, the Corporate Debtor, for an unpaid Operational Debt of Rs.1,36,36,007/-. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for goods supplied since August 2018. The Date of Default is not mentioned in the Petition. However, the first invoice raised by the Operational Creditor is dated 11.08.2018 and the last invoice raised by the Operational Creditor is dated 17.10.2018. As per the terms of the Invoices, the due date for payment was 60 days and hence, the last date for making

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## Facts

Naresh Steel Industries Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate CIRP against Orbit Ayas Private Limited (Corporate Debtor) for an unpaid operational debt of Rs. 1,36,36,007. The Operational Creditor claimed that the Corporate Debtor purchased goods from them regularly since August 2018, with invoices totaling Rs. 1,06,02,427. The Corporate Debtor made a payment of Rs. 10,82,359 towards the invoice dated 11.08.2018. The Operational Creditor sent a communication to the Corporate Debtor for confirmation of accounts for the accounting year 2018-2019, showing a debit balance of Rs. 1,00,20,068, which the Corporate Debtor confirmed. The Operational Creditor issued a demand notice

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## Issues and analysis

### Issue 1: Whether there has been an operational debt and …

**Ratio:** The existence of an operational debt and default is a prerequisite for admitting an

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**Reasoning:** The Corporate Debtor failed to provide any evidence of defects in the materials supplied

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**Interpretation:** The court interpreted the evidence and arguments to determine whether an

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**Application:** The court applied the ratio to the facts of the case, noting that the Corporate

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Naresh Steel…
- **Respondents:** Orbit Ayas…

## Timeline

- **2018-08-01 — Supply of…**: The Corporate Debtor purchased various goods from the Operational Creditor from August…
- **2018-08-11 — First In…**: The first invoice raised by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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