# In the matter of SHRADDHA EQUINOX LLP

> NCLT judgment dated 2025-01-06. Citation: TCN-2025-NCLT-00674. Fraser and Company Limited, the Operational Creditor, filed a Company Petition under Section 9…

- **Court:** NCLT
- **Order date:** 6 Jan 2025
- **Citation:** TCN-2025-NCLT-00674
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shraddha-equinox-llp-61d01708

## Summary

### Background

Fraser and Company Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Shraddha Equinox LLP, the Corporate Debtor, for a total operational debt of Rs. 1,50,81,471. The Operational Creditor is engaged in the business of trading and supplying building materials, while the Corporate Debtor is involved in real estate projects. The Corporate Debtor placed orders for various building materials, and the Operational Creditor supplied these materials, raising invoices. A demand notice was issued on October 16, 2023, but the Corporate Debtor failed to make the payment.

## Facts

Fraser and Company Limited (Operational Creditor) supplied building materials to Shraddha Equinox LLP (Corporate Debtor) from 2022 onwards, raising invoices for the same. The total outstanding amount was Rs. 1,50,81,471. The invoices contained a clause stating that goods once sold were non-refundable and that interest at 24% per annum would be charged on outstanding dues. The Operational Creditor issued a demand notice on October 16, 2023, under Section 8 of the IBC. The Corporate Debtor claimed that the debt was not an operational debt due to MOUs that outlined settlement terms involving the exchange of flats. The Corporate Debtor also alleged that the invoices were invalid and that there was a pre-existing dispute regarding the quality, quantity, and rates of the

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## Issues and analysis

### Issue 1: Whether the claim of the Operational Creditor qualifies as an 'operational debt' under Section …

**Ratio:** Section 5(21) of the IBC defines 'operational debt' as a claim in respect of goods or

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**Reasoning:** The Tribunal noted that the invoices raised by the Operational Creditor were for the

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**Interpretation:** The definition of 'operational debt' under Section 5(21) is interpreted to

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**Application:** In this case, the invoices were for construction materials supplied by the

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Fraser and…
- **Respondents:** Shraddha Equinox…

## Timeline

- **2022-01-01 — Supply of…**: Operational Creditor supplied goods to…
- **2023-10-16 — Demand Notice…**: Operational Creditor issued Demand Notice…

## 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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