# In the matter of Shaw Traders Vs. Balaji Paper & Newsprint Pvt. Ltd. CA (AT) No. 314-2017

> NCLAT judgment dated 2018-10-08. Citation: TCN-2018-NCLAT-00085. The 'Corporate Debtor' filed an application for clarification and modification of the…

- **Court:** NCLAT
- **Order date:** 8 Oct 2018
- **Citation:** TCN-2018-NCLAT-00085
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shaw-traders-vs-balaji-paper-newsprint-pvt-ltd-ca-6f3bac9e

## Summary

### Background

The 'Corporate Debtor' filed an application for clarification and modification of the judgment dated September 18, 2018. The judgment was initially set aside by the Appellate Tribunal because there was no dispute regarding the quality of goods, and no defects were present. The Adjudicating Authority (National Company Law Tribunal) was directed to admit the application preferred by the ‘Operational Creditor'. The Corporate Debtor brought to the notice of the Adjudicating Authority and the Appellate Tribunal that the amount had already been paid, making no amount payable to the ‘Operational Creditor'.

## Facts

Shaw Traders filed an application against Balaji Paper & Newsprint Pvt. Ltd. The Corporate Debtor, Balaji Paper & Newsprint Pvt. Ltd., sought clarification and modification of a prior judgment dated September 18, 2018. The Corporate Debtor claimed that the amount owed to the Operational Creditor (Shaw Traders) had already been paid. The initial judgment had set aside the order passed by the Adjudicating Authority (National Company Law Tribunal) and directed the admission of the application by the Operational Creditor because there was no dispute regarding the quality of goods and no defects were present. The Corporate Debtor argued that the Adjudicating Authority and the Appellate Tribunal were notified about the payment. The Appellate Tribunal noted that the

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should determine if a debt is due under the law or in fact …

**Ratio:** The Adjudicating Authority must be satisfied that a debt is due under the law or in fact

…

**Reasoning:** The Appellate Tribunal clarified that the Adjudicating Authority has the responsibility

…

**Interpretation:** This clarifies the procedural requirements for the Adjudicating Authority in

…

**Application:** In this case, the Appellate Tribunal directed the Adjudicating Authority to

…

## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Shaw Tr…
- **Respondents:** Balaji Paper and…

## Timeline

- **2018-09-18 — Original Judgm…**: Date of the initial judgment that…
- **2018-10-08 — Application for…**: The 'Corporate Debtor' filed an application for clarification and modification of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/shaw-traders-vs-balaji-paper-newsprint-pvt-ltd-ca-6f3bac9e