# In the matter of Super Iron Foundry Private Limited

> NCLT judgment dated 2023-11-30. Citation: TCN-2023-NCLT-00494. This case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 Nov 2023
- **Citation:** TCN-2023-NCLT-00494
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/super-iron-foundry-private-limited-dd1fbfb1

## Summary

### Background

This case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Mr. Sanjay Sharma, Partner of M/s. Ma Jagadamba Enterprises (Operational Creditor), against M/s. Super Iron Foundry Private Limited (Corporate Debtor), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default of Rs. 97,94,279/- along with interest at 24% from the date of payment, totaling Rs. 1,04,44,601.60/-, with the date of default being March 25, 2022. The Corporate Debtor contested the claim, alleging that the interest rate was not agreed upon and that a payment of Rs. 10 Lakh was made after the demand notice was issued, reducing the debt below the threshold financial limit.

## Facts

Mr. Sanjay Sharma, Partner of M/s. Ma Jagadamba Enterprises, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Super Iron Foundry Private Limited, seeking initiation of CIRP. The Operational Creditor claimed that the Corporate Debtor defaulted on a payment of Rs. 97,94,279/- along with interest at 24% from the date of payment, totaling Rs. 1,04,44,601.60/-, with the date of default being March 25, 2022. The Corporate Debtor argued that the interest rate was not agreed upon and that a payment of Rs. 10 Lakh was made on August 16, 2022, after the demand notice was issued on the same day, which was received on August 18, 2022. The Operational Creditor allegedly tempered the invoices to show a higher interest rate of 24% instead

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## Issues and analysis

### Issue 1: Whether the Operational Creditor's claim meets the threshold financial limit as prescribed under …

**Ratio:** The threshold financial limit must be met for an application under Section 9 of the

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**Reasoning:** The Adjudicating Authority noted that the Corporate Debtor made a payment of Rs. 10 Lakh

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**Interpretation:** Section 4 of the I&B Code sets the minimum threshold for initiating CIRP.

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**Application:** In this case, the Corporate Debtor's payment of Rs. 10 Lakh reduced the

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## Parties

- **Judges:** BIDISHA BA…; SHRI. ARVIND…
- **Appellants:** Sanjay S…
- **Respondents:** M/s. Super Iron…

## Timeline

- **1988-07-15 — Corporate Debtor…**: M/s. Super Iron Foundry…
- **2022-03-25 — Date of Default…**: The Operational Creditor claimed March…

## 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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