# In the matter of KAVED STEEL PRODUCTS PRIVATE LIMITED

> NCLT judgment dated 2025-08-25. Citation: TCN-2025-NCLT-01316. Vyash Vanijya Private Limited, an Operational Creditor (OC), filed an application under Section…

- **Court:** NCLT
- **Order date:** 25 Aug 2025
- **Citation:** TCN-2025-NCLT-01316
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/kaved-steel-products-private-limited-53ca6f8e

## Summary

### Background

Vyash Vanijya Private Limited, an Operational Creditor (OC), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Kaved Steel Products Private Limited, the Corporate Debtor (CD). The application was filed due to unpaid invoices for goods supplied.

## Facts

Vyash Vanijya Private Limited (Operational Creditor) filed C.P. (IB) No. 444 of 2025 on 07.03.2025 against Kaved Steel Products Private Limited (Corporate Debtor) under Section 9 of the IBC.

The Operational Creditor claimed a default amount of Rs. 1,79,21,783/- due towards invoices raised for goods supplied between 08.04.2022 and 04.07.2022, with the date of default being 08.05.2022.

The Corporate Debtor argued that disputes should be resolved through arbitration in Mumbai, as per the purchase order clause.

The Corporate Debtor also claimed that non-payment was due to financial distress caused by the COVID-19 pandemic and requested a 6-month extension for payment.

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## Issues and analysis

### Issue 1: Whether the existence of an arbitration clause in the Purchase Order precludes the filing of an …

**Ratio:** The existence of an arbitration clause does not preclude the filing of an application

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**Reasoning:** Judicial precedents, such as Mr. Shahi Md. Karim (supra), establish that the operational

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**Interpretation:** The Adjudicating Authority has the jurisdiction to adjudicate disputes relating

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**Application:** The Corporate Debtor's argument that the arbitration clause must be complied

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Vyash Vanijya…
- **Respondents:** Kaved Steel…
- **Other parties:** Shailesh Shashikan…; Arihant Ne…; +1 more
- **Advocates:** Raina B…; Manoj M…

## Timeline

- **2025-03-07 — Application…**: C.P. (IB) No. 444 of 2025 was filed by Vyash Vanijya Private Limited against Kaved Steel…
- **2025-08-25 — Order Pron…**: The order was pronounced admitting the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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