# In the matter of Sree Bajrang Infracon Private Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03084. M/s Jalan Sales Corporation filed a Company Petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03084
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sree-bajrang-infracon-private-limited-1c6951b3

## Summary

### Background

M/s Jalan Sales Corporation filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Sree Bajrang Infracon Private Limited. The operational debt claimed was Rs. 5,89,34,857.80/-, including principal and interest. The Corporate Debtor (CD) had purchased TMT Bars and Rods from the Operational Creditor (OC) and issued post-dated cheques which were dishonored. A criminal case and money suit were filed but later withdrawn after a Memorandum of Understanding (MoU) was executed. The CD again defaulted on payments, leading to the initiation of the CIRP.

## Facts

M/s Jalan Sales Corporation, an operational creditor, filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Sree Bajrang Infracon Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational debt claimed was Rs. 5,89,34,857.80/-, comprising a principal amount of Rs. 3,00,68,805/- and interest of Rs. 2,88,66,052.80/-. The corporate debtor had purchased TMT Bars and Rods from the operational creditor in March 2021. The corporate debtor issued post-dated cheques that were dishonored. The operational creditor filed a criminal case and a money suit, which were later withdrawn after a Memorandum of Understanding (MoU) was executed. The corporate debtor again defaulted on payments. A

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the IBC is complete …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency

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**Reasoning:** The Tribunal noted that the Corporate Debtor did not file any affidavit in reply, and the

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP if there

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**Application:** The Operational Creditor demonstrated the existence of an operational debt and

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## Parties

- **Judges:** H.V. Subb…; Satya Ranjan…
- **Appellants:** M/s Jalan Sales…
- **Respondents:** M/s Sree Bajrang…

## Timeline

- **2021-03-01 — Initial Approa…**: The Corporate Debtor (CD) initially approached the Operational Creditor (OC) in March…
- **2022-01-01 — Dishonor of…**: The CD issued post-dated cheques which…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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