# In the matter of R N Metals Private Limited CP (IB) No. 79-9-HDB-2021

> NCLT judgment dated 2022-02-08. Citation: TCN-2022-NCLT-04214. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Feb 2022
- **Citation:** TCN-2022-NCLT-04214
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/r-n-metals-private-limited-cp-ib-no-79-9-hdb-2021-10cf6f1d

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Apex Ispat Ltd (Operational Creditor) against R.N. Metals Pvt Ltd & another (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP) due to an alleged default in payment of Rs. 30,61,967/-. The Operational Creditor claimed to have supplied HR Coil and HR Plate to the Corporate Debtor on credit basis. The Corporate Debtor contested the petition on technical grounds and also claimed that the entire debt, including interest, had been paid.

## Facts

Apex Ispat Ltd, the Operational Creditor, filed a petition against R.N. Metals Pvt Ltd, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP for a default of Rs. 30,61,967/-. Apex Ispat claimed to have supplied HR Coil and HR Plate to R.N. Metals on credit. R.N. Metals issued four undated cheques amounting to Rs. 36,90,267/- to Apex Ispat, covering the principal amount and interest. One cheque for Rs. 10,00,000/- was cleared, but two cheques for Rs. 20,61,967/- were not. R.N. Metals then cleared Rs. 20,61,967/- via RTGS. R.N. Metals also paid Rs. 6,28,300/- towards interest. Apex Ispat admitted to receiving Rs. 36,90,267/- but claimed entitlement to litigation costs and interest pendente lite. R.N. Metals argued

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## Issues and analysis

### Issue 1: Whether the documentary evidence furnished with application shows that the aforesaid debt is due …

**Ratio:** The adjudicating authority under Section 7 of the Code has to ascertain the existence of

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**Reasoning:** The court reasoned that since the entire sum of Rs. 36,90,267/-, being the operational

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**Interpretation:** The interpretation of Section 7 of the IBC, as clarified by the Supreme Court

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**Application:** In this case, the Corporate Debtor had fully discharged the operational debt,

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## Parties

- **Judges:** N. Venkata…; Veera Brahma Rao…
- **Appellants:** Apex Ispa…
- **Respondents:** R.N. Metals Pvt…
- **Advocates:** Deepak…; Amir Ba…

## Timeline

- **2019-09-02 — Operational Creditor…**: The Operational Creditor issued a letter addressed to the Corporate Debtor attaching…
- **2019-11-11 — Form-3 demand notice…**: The Operational Creditor issued Form-3 demand notice demanding payment of the operational…

## 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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