# In the matter of Shree Ram Electrocast (Jharkhand) Private Limited

> NCLT judgment dated 2025-09-16. Citation: TCN-2025-NCLT-01379. Kushal Polysacks Pvt Ltd., the Operational Creditor (OC), filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 16 Sept 2025
- **Citation:** TCN-2025-NCLT-01379
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/shree-ram-electrocast-jharkhand-private-limited-df6320db

## Summary

### Background

Kushal Polysacks Pvt Ltd., the Operational Creditor (OC), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shree Ram Electrocast (Jharkhand) Pvt. Ltd., the Corporate Debtor (CD), due to unpaid operational debt.

## Facts

Kushal Polysacks Pvt Ltd. is the Operational Creditor (OC) and a Del Credere Agent (DCA) of Indian Oil Corporation Limited (IOCL).

Shree Ram Electrocast (Jharkhand) Pvt. Ltd. is the Corporate Debtor (CD) and purchased goods/polymer granules from IOCL, tagging the OC as their DCA.

As per the DCA agreement, the CD was required to raise indent through their DCA (OC) with IOCL.

IOCL raised invoices upon the CD with a copy marked to the OC.

The OC is required to pay the invoice within 48 hours, otherwise 36% interest will be charged upon the DCA or existing bank guarantee of DCA will be invoked.

The CD has been purchasing goods/polymer granules since the Financial Year 2021-22 to 2022-23, and the OC has continuously paid the value of the goods.

…

## Issues and analysis

### Issue 1: Whether the debt arising out of a Del Credere …

**Ratio:** The NCLAT in Madras Chemicals & Polymers vs Vijay Aqua Pipes held that the claim

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**Reasoning:** The DCA agreement confers all the rights upon the IOCL, the principal, and Kushal, the

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**Interpretation:** The Adjudicating Authority interpreted the DCA agreement to mean that the OC,

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**Application:** The Adjudicating Authority applied the NCLAT's decision and the interpretation

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## Parties

- **Judges:** BIDISHA BA…; Cmde Siddharth…
- **Appellants:** Kushal Polysacks…
- **Respondents:** Shree Ram…
- **Other parties:** Naresh Kumar…; Kushal Ag…; +3 more
- **Advocates:** D.N. Sh…; Niloy Sen…; +5 more

## Timeline

- **2010-06-22 — DCA Agre…**: Formal agreement between IOCL and Kushal Polysacks Pvt Ltd. (OC) as a Del Credere Agent…
- **2021-2023 — Goods Pur…**: Shree Ram Electrocast (Jharkhand) Pvt. Ltd.…

## 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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