# In the matter of Satra Property Development Pvt. Ltd. C.P. (IB)- 4307(MB)-2018

> NCLT judgment dated 2022-08-12. Citation: TCN-2022-NCLT-01373. The case involves a petition filed by Mr. Sanjay Hasmukhbhai Shah, an Operational Creditor,…

- **Court:** NCLT
- **Order date:** 12 Aug 2022
- **Citation:** TCN-2022-NCLT-01373
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/satra-property-development-pvt-ltd-cp-ib-4307mb-2018-6a309e6d

## Summary

### Background

The case involves a petition filed by Mr. Sanjay Hasmukhbhai Shah, an Operational Creditor, against M/s. Satra Property Development Pvt. Ltd., the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor alleges that the Corporate Debtor defaulted on payments for supplied Iron and Steel material. The petition seeks to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor denies any liability and claims the debt is time-barred and that the documents presented by the Operational Creditor are fabricated. A separate civil suit for recovery of the same invoice amount is already pending in the City Civil Court, Mumbai.

## Facts

Mr. Sanjay Hasmukhbhai Shah, the Operational Creditor, filed a petition against M/s. Satra Property Development Pvt. Ltd., the Corporate Debtor, for defaulting on a payment of Rs. 27,78,059/-, which includes the principal amount of Rs. 9,45,780/- for Iron and Steel material supplied on 25th December 2010, along with interest at 24% per annum. The Operational Creditor sent a demand notice on 8th October 2018. The Corporate Debtor denied the liability on 20th October 2018, claiming the debt was time-barred and the documents were fabricated. The due date for the invoice was 28th February 2011. A separate civil suit, Summary Suit No. 1355 of 2018, was filed by the Operational Creditor for recovery of Rs. 27,64,585/- in respect of the same invoice amount. The Corporate

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

**Ratio:** The principle of default under Section 9 of the Insolvency and Bankruptcy Code, 2016,

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**Reasoning:** The court acknowledged the existence of an operational debt of Rs. 9,75,780/- since 28th

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**Interpretation:** The interpretation of default involves determining whether the Corporate Debtor

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**Application:** The court found that a default existed, but it was beyond the period of

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Sanjay Hasmukhbhai…
- **Respondents:** Satra Property…; M/s. Satra…

## Timeline

- **2010-12-25 — Invoice…**: Invoice No. 538/10-11…
- **2011-02-28 — Due Date of…**: The due date of the invoice was 60 days from the date of the invoice, that is 28th…

## 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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