# In the matter of PN Steel Traders Private Limited

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03187. The case involves a Company Petition filed by Superways Enterprises Private Limited…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03187
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pn-steel-traders-private-limited-0f537f49

## Summary

### Background

The case involves a Company Petition filed by Superways Enterprises Private Limited ("Operational Creditor/Petitioner") under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate Corporate Insolvency Resolution Process (“CIRP”) against PN Steel Traders Private Limited ("Corporate Debtor/ Respondent"). An application (IA No. 4626 of 2023) was filed by the Resolution Professional of the Operational Creditor seeking imposition of penalty against the Respondents for initiating CIRP of the Corporate Debtor fraudulently with malicious intent. The Operational Creditor was admitted into CIRP by the Tribunal vide order dated 26.07.2022 in CP(IB) 2 of 2021.

## Facts

Superways Enterprises Private Limited, the Operational Creditor, filed a petition under Section 9 of the IBC to initiate CIRP against PN Steel Traders Private Limited, the Corporate Debtor. The Corporate Debtor was incorporated on 01.04.2013. The Operational Creditor deals in the trading and supply of steel and allied materials. A claim of Rs. 7,33,68,871/- was raised by the Operational Creditor on the Corporate Debtor against the material supplied on credit basis. A Purchase Order dated 27.03.2017 was raised on the Operational Creditor by the Corporate Debtor for supply of steel material viz. HR coils for an amount of Rs. 8,17,90,875/-. Invoices were raised for Rs. 7,69,20,814/- during the period from 06.04.2017 to 08.04.2017. The outstanding debt of Rs. 7,33,68,871/-

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## Issues and analysis

### Issue 1: Whether the application (IA No. 4626 of 2023) filed by the Resolution Professional of the …

**Ratio:** Section 65 of the Code provides action in case where the (a) insolvency proceedings are

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**Reasoning:** The Tribunal found that there was no prima facie evidence of fraudulent or malicious

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**Interpretation:** Section 65 of the IBC aims to deter the misuse of the insolvency resolution

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**Application:** In this case, the Tribunal found that the evidence presented by the Resolution

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## Parties

- **Judges:** V.G. B…; Prabhat…
- **Appellants:** Prashant…
- **Respondents:** P N Steel Traders…; Vinod Jatiya &…
- **Advocates:** Mily Gh…; Zal T. Andhyarujin…; +1 more

## Timeline

- **2013-04-01 — Incorporation of…**: The Corporate Debtor, PN Steel Traders…
- **2017-03-27 — Purchase…**: A Purchase Order was raised on the Operational Creditor by the Corporate Debtor for…

## 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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