# In the matter of Popular Steel Works and Agricultural Implements Private Limited C.P. No. 969-IBC-MB-2020

> NCLT judgment dated 2023-04-28. Citation: TCN-2023-NCLT-03559. The case involves a petition filed by M/s Karveer Nivasini Engineers & Suppliers (Operational…

- **Court:** NCLT
- **Order date:** 28 Apr 2023
- **Citation:** TCN-2023-NCLT-03559
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/popular-steel-works-and-agricultural-implements-private-limited-cp-no-969-ibc-mb-4f84631a

## Summary

### Background

The case involves a petition filed by M/s Karveer Nivasini Engineers & Suppliers (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Popular Steel Works and Agricultural Implements Private Limited (Corporate Debtor). The operational creditor claims an unresolved financial debt of Rs. 1,21,64,716.63/-. The Corporate Debtor opposed the admission of the petition, primarily arguing the existence of pre-existing disputes and raising concerns about the interest claimed on the invoices and an alleged fraud committed by the operational creditor.

## Facts

M/s Karveer Nivasini Engineers & Suppliers (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s Popular Steel Works and Agricultural Implements Private Limited (Corporate Debtor) for an outstanding debt of Rs. 1,21,64,716.63. The Operational Creditor supplied goods such as bearings, hardware, and steel materials to the Corporate Debtor. The Corporate Debtor made part payments but failed to clear the entire outstanding amount. The Corporate Debtor issued confirmation letters for the outstanding balance for multiple financial years. The Operational Creditor issued a demand notice, which the Corporate Debtor replied to, raising a dispute. The Corporate Debtor alleged that the Operational

…

## Issues and analysis

### Issue 1: Whether there are pre-existing …

**Ratio:** The existence of a genuine dispute between the parties prior to the issuance of a demand

…

**Reasoning:** The NCLT considered the Corporate Debtor's claim of fraud and excessive pricing. However,

…

**Interpretation:** The term 'dispute' under the IBC must be interpreted to mean a real dispute,

…

**Application:** In this case, the NCLT found that the Corporate Debtor's claim of pre-existing

…

## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Respondents:** M/s Popular Steel…; Rudresh Jagdale…
- **Advocates:** Vivek Pu…; Rudresh J…; +1 more

## Timeline

- **2020-02-06 — Demand Notice…**: Operational Creditor issued Demand…
- **2020-02-24 — Dispute Commu…**: Corporate Debtor communicated the existence…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/popular-steel-works-and-agricultural-implements-private-limited-cp-no-969-ibc-mb-4f84631a