# In the matter of Stelmec Limited

> NCLT judgment dated 2024-03-05. Citation: TCN-2024-NCLT-02222. The Operational Creditor filed a company petition under section 9 of the IBC, 2016, seeking to…

- **Court:** NCLT
- **Order date:** 5 Mar 2024
- **Citation:** TCN-2024-NCLT-02222
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stelmec-limited-7ad4fb6b

## Summary

### Background

The Operational Creditor filed a company petition under section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to an alleged default in payment for supplied materials. The Corporate Debtor contended that the Operational Creditor deliberately did not deposit a post-dated cheque, which would have reduced the outstanding debt below the minimum threshold for initiating CIRP.

## Facts

M/s Matrix Grating Private Limited, the Operational Creditor, filed a Company Petition under section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC), seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Stelmec Limited, the Corporate Debtor. The petition, filed on June 15, 2022, claimed an outstanding amount of INR 1,04,87,945/-. The date of default was specified as June 28, 2021, based on the last invoice. The Operational Creditor, involved in the manufacturing and supply of engineering products, began business with the Corporate Debtor in 2018 for the supply of Steel Structure Material. The payment terms agreed upon included a 90-day period with Post Dated Cheques (PDC). However, the Corporate Debtor allegedly failed to make timely

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## Issues and analysis

### Issue 1: Whether the company petition filed by the Operational Creditor is maintainable given the …

**Ratio:** The petition is not maintainable if the outstanding debt falls below the minimum

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**Reasoning:** The Tribunal found that the Operational Creditor deliberately did not deposit a

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**Interpretation:** The court interpreted the minimum threshold requirement under the IBC to mean

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**Application:** In this case, the Corporate Debtor had sufficient funds to clear the cheque,

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## Parties

- **Judges:** Madhu S…; KISHORE VEMULAPALL…
- **Appellants:** M/s Matrix…
- **Respondents:** Stelmec L…
- **Advocates:** For the Operationa…; Ld. Counsel. For…; +3 more

## Timeline

- **February 29, 2000 — Incorporation of…**: The Corporate Debtor, Stelmec Limited, was incorporated as a private company limited by…
- **February 24, 2021 — Invoice…**: One of the invoices raised by the Operational Creditor for INR 24,07,552/- with an…

## 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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