# In the matter of Shree R.N. Metals (India) Ltd.

> NCLT judgment dated 2023-07-31. Citation: TCN-2023-NCLT-02254. The Transport Corporation of India Ltd. filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 31 Jul 2023
- **Citation:** TCN-2023-NCLT-02254
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-rn-metals-india-ltd-0d3805a1

## Summary

### Background

The Transport Corporation of India Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shree R. N. Metals (India) Private Limited, citing non-payment of operational dues. The applicant, engaged in providing logistics services, claimed a default of Rs. 8,81,566/- along with interest. The corporate debtor, Shree R.N. Metals, is a private company incorporated under the Companies Act, 1956. The applicant provided transportation and logistics services to the respondent for their consignments of business products. The respondent placed various work orders from November 2010, against which the applicant raised invoices. 12 invoices amounting to Rs. 6,89,236/- remained unpaid.

…

## Facts

Transport Corporation of India Ltd. (TCI Freight) filed an application to initiate CIRP against Shree R. N. Metals (India) Pvt. Ltd. under Section 9 of the IBC, claiming unpaid operational debt of Rs. 8,81,566/-. TCI Freight provided transportation and logistics services to Shree R. N. Metals, a company engaged in manufacturing, supply, and export. From November 2010, Shree R. N. Metals placed work orders, and TCI Freight raised invoices, with 12 invoices totaling Rs. 6,89,236/- remaining unpaid from 25.11.2016 to 10.10.2017. TCI Freight issued a demand notice on 26.10.2021. Shree R. N. Metals claimed a pre-existing dispute, alleging deficiency in service and damage to goods, issuing a debit note of Rs. 27,08,000/- on 01.12.2018. TCI Freight had previously filed an

…

## Issues and analysis

### Issue 1: Whether the demand notice in Form No. 3 dated …

**Ratio:** The service of a demand notice is a mandatory requirement under Section 8 of the IBC for

…

**Reasoning:** The Adjudicating Authority observed that the demand notice was sent via speed post on

…

**Interpretation:** The demand notice must be properly served on the corporate debtor to provide

…

**Application:** The Adjudicating Authority concluded that the Operational Creditor correctly

…

## Parties

- **Judges:** Deep Chandr…; ATUL CHAT…
- **Appellants:** Transport…
- **Respondents:** R N METALS…

## Timeline

- **2010-11-01 — Work Orders…**: The Respondent placed various work…
- **2016-11-25 — First Unpaid…**: The first unpaid 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-rn-metals-india-ltd-0d3805a1