Liquidity Constraints Cannot Defeat Admitted Operational Debt: NCLT Ahmedabad Orders CIRP

Naresh kumar Harishchandra Shakya Vs Kena Alloys Private Limited (NCLT Ahmedabad)

Summary: The National Company Law Tribunal, Ahmedabad Bench, Court-II considered an application filed under section 9 of the Insolvency and Bankruptcy Code, 2016 by Nareshkumar Harishchandra Shakya, Proprietor of N.H. Scrap Traders, as Operational Creditor against Kena Alloys Private Limited. The Operational Creditor claimed an unpaid amount of Rs.1,48,57,650/-, with default stated to have occurred from 10.11.2021, being the due date of the first invoice.

The Operational Creditor stated that the Corporate Debtor had been purchasing MS Scrap since 2017 and had regularly made payments until 09.11.2021. According to the applicant, supplies thereafter continued without dispute or demur and an amount of Rs.1,10,19,685/- was outstanding as on 01.12.2023 against invoices raised between 10.11.2021 and 01.12.2023. The Corporate Debtor was stated to have acknowledged the liability through Balance Confirmations dated 09.02.2022 and 22.04.2022. A section 8 demand notice dated 01.12.2023 was issued and received on 02.12.2023.

The applicant had earlier filed CP (IB) No.133 of 2024 under section 9, which was rejected on 25.10.2024 because the Form-3 and Form-4 demand notices had been issued in the name of the proprietorship concern instead of the proprietor. The order nevertheless recorded that the goods had been delivered and invoices for the period from 10.11.2021 to 21.04.2022 had been received. Fresh Form-3 demand notices dated 30.11.2024 and 24.12.2024 claimed Rs.1,48,57,650/- inclusive of interest at 12%. The Corporate Debtor did not pay, while an email dated 08.02.2025 stated that it was facing financial difficulties and was not in a position to make payment.