# In the matter of Simplex Infrastructures Limited

> NCLT judgment dated 2023-12-15. Citation: TCN-2023-NCLT-00218. This case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Dec 2023
- **Citation:** TCN-2023-NCLT-00218
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/simplex-infrastructures-limited-8214c423

## Summary

### Background

This case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Prism Johnson Limited, RMC (India) Division (Operational Creditor), against Simplex Infrastructure Limited (Corporate Debtor). The Operational Creditor sought the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, claiming a default amount of Rs. 3,67,70,249/-. The claim was based on invoices raised for a 'shortfall claim' from September 2018 to November 2018, alleging that the Corporate Debtor failed to lift the agreed quantity of material as per the contract. The Corporate Debtor contested the application, arguing that the claim did not qualify as an 'operational debt' and that there were pre-existing disputes regarding

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## Facts

Prism Johnson Limited, RMC (India) Division, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Simplex Infrastructure Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default amount of Rs. 3,67,70,249/-, based on invoices raised for a 'shortfall claim' from September 2018 to November 2018. These claims arose from the Corporate Debtor allegedly failing to lift the agreed quantity of material as per the work order dated April 24, 2018. The work order stipulated a minimum assured quantity of concrete to be purchased by the Corporate Debtor, with compensation payable to the Operational Creditor for any shortfall. The

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## Issues and analysis

### Issue 1: Whether the 'shortfall claims' raised by the Operational Creditor qualify as an 'operational debt' …

**Ratio:** The definition of 'operational debt' under Section 5(21) of the I&B Code, 2016, means

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**Reasoning:** The Adjudicating Authority reasoned that the invoices raised by the Operational Creditor

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**Interpretation:** The interpretation of 'operational debt' under Section 5(21) of the I&B

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**Application:** In this case, the 'shortfall claims' raised by the Operational Creditor were

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Prism Johnson…
- **Respondents:** SIMPLEX INFRASTRUC…

## Timeline

- **2023-11-28 — Date of H…**: Hearing was conducted…
- **2023-12-15 — Date of Prono…**: Order was pronounced on…

## 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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