# In the matter of Vasundhara Seamless Stainless Tubes Pvt. Ltd.

> NCLT judgment dated 2024-08-22. Citation: TCN-2024-NCLT-00761. The case involves an application filed by Hiralal Bhimjibhai Kumavat, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 22 Aug 2024
- **Citation:** TCN-2024-NCLT-00761
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vasundhara-seamless-stainless-tubes-pvt-ltd-86a4bc68

## Summary

### Background

The case involves an application filed by Hiralal Bhimjibhai Kumavat, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Vasundhara Seamless Stainless Tubes Private Limited, the Corporate Debtor. The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Operational Creditor and Corporate Debtor entered into a sale agreement dated 31.01.2019, where the Corporate Debtor agreed to sell machineries and scrap lying in the factory previously known as 'Choksi Tubes Company' for a sale consideration of Rs. 1 crore. The Operational Creditor paid Rs. 1 crore as advance, which is reflected in the Corporate Debtor's financial statements for the years 2018-19 to

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## Facts

Hiralal Bhimjibhai Kumavat, the Operational Creditor, filed an application under Section 9 of the IBC against Vasundhara Seamless Stainless Tubes Private Limited, the Corporate Debtor, to initiate CIRP. The parties entered into a sale agreement on 31.01.2019, where the Corporate Debtor agreed to sell machineries and scrap for Rs. 1 crore. The Operational Creditor paid the full amount as advance, reflected in the Corporate Debtor's financial statements from 2018-19 to 2021-22. Despite receiving the full payment, the Corporate Debtor did not allow the Operational Creditor to lift the machineries and scrap, providing false excuses. The Operational Creditor sent multiple letters requesting the machineries/scrap or a refund. The last payment was made on 27.02.2019, with a

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is complete in terms of Section 9 of the …

**Ratio:** Section 9 of the IBC outlines the requirements for an operational creditor to initiate

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**Reasoning:** The court found that the application was

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**Interpretation:** Section 9 of the IBC requires the application to be complete in all respects,

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**Application:** The court determined that the application met all the requirements of Section

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Hiralal Bhimjibhai…
- **Respondents:** Vasundhara…; Vasundhara…

## Timeline

- **2019-01-31 — Sale Agre…**: Parties entered into a sale agreement where the Corporate Debtor agreed to sell…
- **2019-02-27 — Last Pay…**: Last payment of Rs. 40 lakhs was made, after which a 30-day time period was given to lift…

## 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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