# In the matter of Palaparty Abhishek vs. Binjusaria Ispat Pvt. Ltd. & Anr.

> SC judgment dated 2024-02-26. Citation: TCN-2024-SC-00093. The Civil Appeal was filed under Section 62(1) of the Insolvency and Bankruptcy Code, 2016, by the…

- **Court:** SC
- **Order date:** 26 Feb 2024
- **Citation:** TCN-2024-SC-00093
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/palaparty-abhishek-vs-binjusaria-ispat-pvt-ltd-anr-7998c7f6

## Summary

### Background

The Civil Appeal was filed under Section 62(1) of the Insolvency and Bankruptcy Code, 2016, by the Appellant against the final judgment dated 08.07.2022 of the NCLAT, which affirmed the judgment dated 16.11.2021 of the NCLT, Hyderabad Bench. The NCLT had admitted an application filed by Respondent No. 1, an Operational Creditor, under Section 9 of the IBC, initiating the Corporate Insolvency Resolution Process (CIRP) against M/s Abhirama Steels Limited, the Corporate Debtor.

## Facts

The Corporate Debtor, Abhirama Steels Limited, made an oral purchase order for Mild Steel Billets from Respondent No. 1, Binjusaria Ispat Pvt. Ltd., who supplied the goods. Binjusaria Ispat Pvt. Ltd. raised invoices amounting to INR 1,77,15,636. A Memorandum of Understanding (MOU) was entered into on 13.02.2016 between Binjusaria Ispat Pvt. Ltd., the Corporate Debtor, and the Appellant, Palaparty Abhishek, where the Corporate Debtor agreed to repay the amount by 29.02.2016. The Corporate Debtor provided 8 post-dated cheques, which were dishonored due to non-payment. Binjusaria Ispat Pvt. Ltd. initiated proceedings under Section 138 of the Negotiable Instruments Act, 1881. Both parties filed civil suits for recovery. Binjusaria Ispat Pvt. Ltd. also filed Company

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC could be admitted despite the pendency of a …

**Ratio:** The adjudicating authority must determine if there is a plausible contention requiring

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**Reasoning:** The court considered the findings of the NCLT and NCLAT and determined that the argument

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**Interpretation:** The interpretation of Section 9 of the IBC, in conjunction with the principles

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**Application:** In this case, the court found that the pendency of the civil suit did not

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## Parties

- **Judges:** J.K. MAHE…; Sanjay…
- **Appellants:** PALAPARTY A…
- **Respondents:** Abhirama Steels…; BINJUSARIA ISPAT…
- **Other parties:** Affir…

## Timeline

- **2016-02-13 — MOU Exec…**: Respondent No. 1 entered into a Memorandum of Understanding (MOU) with the Corporate…
- **2016-02-29 — Repayment…**: The Corporate Debtor agreed to repay the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 62(1) — Appeal to Supreme Court](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-62)

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