# In the matter of Supreme Engineering Ltd.

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03117. Sanyo Special Steel Manufacturing India Pvt. Ltd. filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03117
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/supreme-engineering-ltd-4a51e060

## Summary

### Background

Sanyo Special Steel Manufacturing India Pvt. Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Supreme Engineering Ltd. for default in repayment of ₹1,17,56,287/- as of 30.06.2022. The operational creditor and corporate debtor had a business relationship for over 18 years, with the corporate debtor issuing orders for alloys and special steel products. The operational creditor supplied the materials as per the agreed schedules. The corporate debtor issued three cheques totaling Rs. 93,63,108, which were dishonored. A legal demand notice was sent but remained unreplied. The corporate debtor denied the claim, including interest, and challenged the maintainability of the claim, arguing that the principal amount was less than Rs. 1

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## Facts

Sanyo Special Steel Manufacturing India Pvt. Ltd. (Operational Creditor) filed a petition against Supreme Engineering Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The claim was for ₹1,17,56,287/- due as of 30.06.2022. The Operational Creditor and Corporate Debtor had a business relationship for over 18 years. The Corporate Debtor issued orders for alloys and special steel products, and the Operational Creditor supplied the materials. The invoices issued by the Operational Creditor contained a clause stipulating interest at 15% per annum on delayed payments. The Corporate Debtor issued three cheques totaling Rs. 93,63,108, which were dishonored. The Operational Creditor issued a demand notice dated 09.04.2022, which was served to

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## Issues and analysis

### Issue 1: Whether the operational debt should include interest for the purpose of maintainability of the …

**Ratio:** The total amount for maintainability of the claim includes both the principal debt amount

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**Reasoning:** The court relied on the judgment of the NCLAT in Prashant Agarwal vs. Vikash

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**Interpretation:** The interpretation of Section 4 of the IBC, read with relevant notifications,

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**Application:** In this case, the principal debt amount was Rs. 80,63,110/-, and the interest

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Sanyo Special…
- **Respondents:** Supreme Engineerin…; M/s. Supreme…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2019-02-14 — First Invoi…**: One of the invoices issued by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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