# In the matter of Vidhi Minerals & Alloys Private Limited

> NCLT judgment dated 2023-09-04. Citation: TCN-2023-NCLT-01783. The Operational Creditor, Oswal Minerals Limited, filed a Company Petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 4 Sept 2023
- **Citation:** TCN-2023-NCLT-01783
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vidhi-minerals-alloys-private-limited-2c7dfca9

## Summary

### Background

The Operational Creditor, Oswal Minerals Limited, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Vidhi Minerals & Alloys Private Limited, for an operational debt of Rs. 3,14,94,938/-. The Operational Creditor claimed to have supplied Manganese Ore to the Corporate Debtor between 2020 and 2021, for which payment was not made as per the agreed terms.

## Facts

Oswal Minerals Limited (Operational Creditor) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Vidhi Minerals & Alloys Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for an outstanding operational debt of Rs. 3,14,94,938/-. The debt arose from the supply of Manganese Ore by the Operational Creditor to the Corporate Debtor between 2020 and 2021. The Corporate Debtor accepted and utilized the ore without any complaints. The terms of purchase required the Corporate Debtor to make payment within 10 days of lifting the material, with a provision for 18% per annum interest on delayed payments. The Operational Creditor issued approximately 40 invoices amounting to Rs 1,87,84,248/-. A

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## Issues and analysis

### Issue 1: Whether the application for initiation of CIRP is maintainable considering the provisions of …

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code, 2016, suspends the initiation of CIRP

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**Reasoning:** The Tribunal observed that all the invoices raised by the Operational Creditor fell

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**Interpretation:** Section 10A provides a bar on initiating CIRP for defaults occurring during the

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**Application:** Since the default occurred during the period specified in Section 10A, the

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Oswal Minerals…
- **Respondents:** Vidhi Minerals &…; None App…

## Timeline

- **2020-08-01 — Invoices…**: Invoices were raised from August…
- **2020-09-24 — Invoice P…**: Invoices were raised during the…

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