# In the matter of Sree Bajrang Infracon Private Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03143. 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-03143
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sree-bajrang-infracon-private-limited-1ca61f30

## 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 claim was for 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 Operational Creditor (OC) and Corporate Debtor (CD) had a business relationship where the CD purchased TMT Bars and Rods from the OC. Cheques issued by the CD were dishonored, leading to criminal cases and money suits, which were later withdrawn after a Memorandum of Understanding (MoU) was executed. However, subsequent post-dated cheques also bounced, prompting the OC to issue a demand notice.

## Facts

M/s Jalan Sales Corporation (Operational Creditor) filed a petition against M/s Sree Bajrang Infracon Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The claim amounted to Rs. 5,89,34,857.80/-, including principal and interest. The OC and CD had a business relationship involving the purchase of TMT Bars and Rods by the CD from the OC. The CD issued cheques that were dishonored, leading to criminal cases and money suits, which were later withdrawn following an MoU. Subsequent post-dated cheques also bounced. The OC issued a demand notice on 25.04.2023, which went unanswered. The default commenced on 27.03.2021. The petition was filed on 17.05.2023. The Corporate Debtor failed to file any reply to

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## Issues and analysis

### Issue 1: Whether the application filed by the Petitioner under Section 9 of the IBC, 2016 is complete for …

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

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**Reasoning:** The Tribunal found that the Operational Creditor had demonstrated the existence of an

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** In this case, the Operational Creditor's application was found to be complete

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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 Ap…**: Corporate Debtor initially approached the…
- **2022-01-01 — Criminal Case and Money…**: Operational Creditor filed criminal case (Cr. Case No. 618/2022) and Money Suit No.…

## 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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