# In the matter of Y. R. Traders Private Limited CP (IB) No.13-KB-2022

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-04678. Chaitanya Alloys Private Limited filed a Company Petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-04678
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/y-r-traders-private-limited-cp-ib-no13-kb-2022-83f67d68

## Summary

### Background

Chaitanya Alloys Private Limited filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Y. R. Traders Private Limited, alleging failure to pay a debt of ₹4,36,55,343/-.

## Facts

Chaitanya Alloys Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Y.R. Traders Private Limited (Corporate Debtor).

The Operational Creditor claimed a debt of ₹4,36,55,343/- as of 31 October 2021, due to the Corporate Debtor's failure to refund an advance payment for TMT Bar.

The Corporate Debtor acknowledged the debt in a letter dated 29 February 2016 and promised to pay it within six months, but failed to do so.

The Operational Creditor sent a demand notice under section 8 of the Code on 22 November 2021, which was not replied to by the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a debt …

**Ratio:** The Corporate Debtor acknowledged the

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**Reasoning:** The Corporate Debtor admitted to the debt in writing and made partial payments, but

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**Interpretation:** The acknowledgment of debt and failure to pay constitute a default under the

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**Application:** The Adjudicating Authority determined that the Corporate Debtor was in default

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Chaitanya Alloys…
- **Respondents:** Y.R. Traders…
- **Other parties:** Rakesh…; Sushanta Kumar…
- **Advocates:** Sweta Mo…; Urmila Chak…; +1 more

## Timeline

- **2011-06-14 — Incorporation of…**: Y.R. Traders Private Limited…
- **2013-03-04 — Order Pla…**: Operational Creditor placed an order for purchase of TMT Bar with the Corporate Debtor…

## 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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