# In the matter of U P Bone Mills Private Limited

> NCLT judgment dated 2023-10-26. Citation: TCN-2023-NCLT-01014. Mr. Mujahid, proprietor of Moon Traders, filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 26 Oct 2023
- **Citation:** TCN-2023-NCLT-01014
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/u-p-bone-mills-private-limited-8a60d816

## Summary

### Background

Mr. Mujahid, proprietor of Moon Traders, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against UP Bone Mills Private Limited, the respondent. The respondent is a private limited company incorporated on 11.05.1999, engaged in manufacturing M. S. Ingots and billets. The applicant supplied iron scrap to the respondent based on purchase orders issued in February and March 2021. The total turnover during this period was Rs. 16,12,23,532/-. A payment of Rs.4,32,37,146/- was received by the applicant after a delay of two months, starting from 12.05.2021 to 14.09.2021, but thereafter, no payment was made by the respondent. The applicant served a notice in Form-3 on the respondent on

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## Facts

Mr. Mujahid, the proprietor of Moon Traders (the 'Applicant'), filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against UP Bone Mills Private Limited (the 'Respondent'). The Respondent, incorporated on 11.05.1999, is engaged in manufacturing M. S. Ingots and billets. In February 2021, the Respondent approached the Applicant for the purchase of iron scrap, issuing a purchase order on 15.02.2021. The Applicant supplied materials from 20.02.2021 to 26.03.2021, totaling Rs. 16,12,23,532/-, with payment terms of 45 days and an 18% per annum interest on overdue amounts. A partial payment of Rs.4,32,37,146/- was made between 12.05.2021 and 14.09.2021, but no further payments were

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** Section 9(5) of the IBC, 2016 stipulates that the Adjudicating Authority shall admit the

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**Reasoning:** The Adjudicating Authority found that the

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**Interpretation:** Section 9 outlines the procedure for initiating CIRP by an operational

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**Application:** The application was deemed complete as it contained all necessary information

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** Muja…
- **Respondents:** U P Bone Mills…

## Timeline

- **1999-05-11 — Incorporation of UP Bone…**: UP Bone Mills Private…
- **2021-02-15 — Purchase Orde…**: The Respondent issued a purchase order to the…

## 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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