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2025 Supreme(Online)(NCLT) 8116
NATIONAL COMPANY LAW TRIBUNAL
SHRI. JYOTI KUMAR TRIPATHI, MEMBER (JUDICIAL), SHRI. RAVICHANDRAN RAMASAMY, MEMBER (TECHNICAL)
Vinayaka Alloys Private Limited – Appellant
Versus
Annam Steels Private Limited – Respondent
CP(IB)/208 (CHE)/2023
For the Respondent:Amarnath & Ashwin Sam, Advocates
The admission of a petition under Section 9 of the IBC requires the establishment of an undisputed operational debt; silence from the respondent indicates no existing dispute.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 9 - Petition filed for initiating Corporate Insolvency Process by Financial Creditor against Corporate Debtor for outstanding operational debt - Operational Creditor established the existence and default of debt arising from supplied goods based on invoices, ledger entries, and a confirmed decree from High Court - No pre-existing dispute evidenced by the Corporate Debtor, facilitating admission of petition. (Paras 4.10, 4.12, 4.17)
(B) Importance of Demand Notice - Issuance of Demand Notice without response from Corporate Debtor reinforced grounds for admitting the CIRP application. (Para 4.4)
| Table of Content |
|---|
| 1. overview and context of the operation initiated under ibc. (Para 1 , 2) |
| 2. submissions and claims made by the financial creditor regarding the operational debt. (Para 3) |
| 3. tribunal’s observations regarding the debt, demand notice, and ex parte status. (Para 4) |
ORDER
(Heard through Hybrid Mode)
Under consideration is a petition under Section 7 of IBC filed by Vinayaka Alloys Private Limited, Petitioner/ Financial Creditor herein against Annam Steels Private Limited, Respondent / Corporate Debtor herein for initiating Corporate Insolvency Process (CIRP) against the Corporate Debtor.
2. SUBMISSIONS OF THE APPLICANT
2.1. Part I of the Application contains the particulars of the Applicant Vinayaka Alloys Private Limited. Part II of the Application sets out the details of the Corporate Debtor. It was incorporated on 14.12.2000 with authorised share capital of the Corporate Debtor is Rs.5,00,000/- and its paid up share capital of Rs.5,00,000/- and address at No. 244, T.H. Road, Tondiarpet, Chennai – 600081, within the jurisdiction of this Tribunal. In Part III of the application, the Financial Creditor has not proposed anyone as the IRP. Part IV of the application sets out the details of the debt being Rs. 7,05,84,950 (Rupees seven crores five lakh eighty four thousand nine hundred and fifty only) with Principal of Rs. 3,87,00,000 plus interest of Rs. 3,18,84,950, due as on 28.07.2014, with interest at 9% p.a. from the date of invoice till realisation. Later as per Judgement of Hon’ble High Court of Madras in C.S(Comm. Div) No. 543 of 2023 decreed on 02.09.2022, due as on 28.06.2014. This application has been filed on 12.12.2023.
2.2. It is submitted that it supplied steel scrap to the Corporate Debtor, M/s. Annam Steels Pvt. Ltd., under various invoices, and the supplies were duly accepted without any dispute.
2.3. It is further submitted that against these supplies, a principal Rs. amount of 3,87,00,000/- became due and payable. The Applicant further submits that interest at 9% per annum is contractually leviable, Rs. and the interest component has accrued to 3,18,84,950/-, making the Rs. total operational debt 7,05,84,950/- as on 28.07.2014.
2.4. It is also submitted that the Applicant relies on its ledger statement, showing all credits and debits between 01.04.2011 to 31.07.2023, to demonstrate that despite repeated follow-ups, the Corporate Debtor failed to clear the outstanding amount.
2.5. It is further submitted that the Corporate Debtor had acknowledged the liability during the financial year 2015–2016, as evidenced by Annexure-IV, thereby extending the period of limitation.
2.6. The Applicant also places reliance on a judgment of the Hon’ble High Court of Madras dated 02.09.2022 in C.S.(Comm. Div.)No. 543/2023, where the claim of the Applicant against the Corporate Debtor was decreed. The decree confirms the liability as due and payable.
2.7. It is also submitted that the initial date of debt is 28.06.2014. After that a case was filed before the Hon’ble High Court between the same parties in C.S.(Comm Div) No. 543/ 2023 and the judgement for the same was delivered on 02.09.2022 in which the Operational creditor has a decree and judgement in its favour. Thus, the date of default for the purpose of moving application was fixed on 02.09.2022.
2.8. It is submitted that a certificate issued by the Chartered Accountant certifies that no payment has been made by the Corporate Debtor towards the decreed amount or the outstanding operational debt till date.
2.9. The Applicant submits that the debt is further supported by the Information Utility record, evidencing the default. The Applicant clarifies that no security interest exists and the debt is unsecured. There is also no pre-existing dispute raised at any point prior to issuance of the demand notice. Since the debt is above the statutory threshold, is undisputed, and the default stands established through invoices, ledger entries, CA certificate, the High Court decree, an
