# In the matter of RKI Builders Private Limited C.P. (IB) NO. 716-9-HDB-2019

> NCLT judgment dated 2022-12-08. Citation: TCN-2022-NCLT-00207. Sheetal Ispat Private Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Dec 2022
- **Citation:** TCN-2022-NCLT-00207
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rki-builders-private-limited-cp-ib-no-716-9-hdb-2019-f3b732fb

## Summary

### Background

Sheetal Ispat Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against RKI Builders Private Limited, alleging a default of an operational debt exceeding Rupees One Crore. The applicant claimed that the corporate debtor had failed to pay an outstanding amount for goods supplied during 2014-15, despite repeated requests and a statutory notice. The corporate debtor contested the application, arguing that the applicant had charged an exorbitant interest rate and that the application was an attempt to force the company into premature winding up.

## Facts

Sheetal Ispat Private Limited (Operational Creditor/Applicant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against RKI Builders Private Limited (Corporate Debtor), alleging a default on an operational debt. The Applicant supplied goods (iron and steel products) to the Corporate Debtor during 2014-15, for which the Corporate Debtor placed purchase orders. The Corporate Debtor made partial payments against the total sales, leaving an outstanding amount. The Applicant issued a statutory notice under Section 8 of the Code, but the Corporate Debtor neither complied with the notice nor raised any dispute. The Corporate Debtor issued a cheque that was dishonored due to

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## Issues and analysis

### Issue 1: Whether there exists a debt that is due and payable by the Corporate Debtor? If so, whether there …

**Ratio:** An Operational Creditor can only trigger the CIRP process when there is an undisputed

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**Reasoning:** The Corporate Debtor neither rebutted the contents of the demand notice nor repaid the

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**Interpretation:** The court interpreted Sections 8 and 9 of the IBC to mean that an undisputed

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**Application:** Based on the undisputed factual matrix, the Adjudicating Authority concluded

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## Parties

- **Judges:** DR.VENKATA…; Satya Ranjan…
- **Appellants:** Sheetal Ispat Pvt…
- **Respondents:** RKI Builders…; RKI Builders Pvt…

## Timeline

- **2014-01-01 — Supply of…**: The Applicant dispatched material to the Corporate Debtor and raised various tax invoices…
- **2019-07-15 — Cheque I…**: The Corporate Debtor issued a cheque, dated 15.07.2019, bearing No. 493046 for Rs.…

## 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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