# In the matter of Raasi Refractories Ltd. CP(IB) No. 441-9-HDB-2020

> NCLT judgment dated 2022-02-15. Citation: TCN-2022-NCLT-04143. The case involves an application filed by Global Monarch FZC (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 15 Feb 2022
- **Citation:** TCN-2022-NCLT-04143
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/raasi-refractories-ltd-cpib-no-441-9-hdb-2020-5ce879b8

## Summary

### Background

The case involves an application filed by Global Monarch FZC (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Raasi Refractories Ltd (Corporate Debtor). The Operational Creditor sought admission of the application, initiation of Corporate Insolvency Resolution Process (CIRP), granting moratorium, and appointment of an Interim Resolution Professional (IRP). The Corporate Debtor allegedly failed to discharge a debt of Rs.1,17,08,250/-, including principal and interest. The Operational Creditor claimed to have supplied refractory raw materials to the Corporate Debtor based on a purchase order and issued invoices, which were accepted. Despite reminders and a demand notice, the Corporate Debtor failed to make full payment.

## Facts

Global Monarch FZC (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Raasi Refractories Ltd (Corporate Debtor) for failing to pay a debt of Rs.1,17,08,250/-. The debt arose from the supply of refractory raw materials based on a purchase order issued by the Corporate Debtor on 2018-11-19 for 200 MTs of fused magnesia 97 brown (2:1) at 1165 USD per MT. The Operational Creditor issued Proforma Invoice No.GMON/RAASI/2018/001, which was accepted by the Corporate Debtor. The Operational Creditor supplied the material in two lots and raised two invoices: Invoice No.GMON/RAASI/2018/004 dated 2018-12-08 and Invoice No.GMON/RAASI/2018/005 dated 2018-12-15, each for Rs.87,37,500/- (USD 116,500). The Corporate Debtor

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## Issues and analysis

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

**Ratio:** The ratio is based on Section 8(2) of the I&B Code, 2016, which requires the

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**Reasoning:** The court reasoned that the Corporate Debtor failed to send a reply to the demand notice

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**Interpretation:** The interpretation of Section 8(2) and the Supreme Court's rulings is that a

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**Application:** The court applied the ratio to the facts by noting that the Corporate Debtor

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Global Mona…
- **Respondents:** Raasi Refractories…

## Timeline

- **2018-11-19 — Purchase…**: Corporate Debtor placed a Purchase Order for supply of 200 MTs of fused magnesia 97 brown…
- **2018-12-08 — Invoice I…**: Operational Creditor issued Invoice…

## 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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