# In the matter of Addinath Rubbers Private Limited CP (IB) No. 42-Chd-HP-2019

> NCLT judgment dated 2019-09-25. Citation: TCN-2019-NCLT-01254. M/s Jai Ganesh Trading Co., through its proprietor Mr. Himesh Taneja (Operational Creditor),…

- **Court:** NCLT
- **Order date:** 25 Sept 2019
- **Citation:** TCN-2019-NCLT-01254
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/addinath-rubbers-private-limited-cp-ib-no-42-chd-hp-2019-3ea2dbab

## Summary

### Background

M/s Jai Ganesh Trading Co., through its proprietor Mr. Himesh Taneja (Operational Creditor), filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Addinath Rubbers Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted in making payment for the raw materials supplied, with a total debt of ₹55,28,133/-. The Corporate Debtor denied the liability, stating that non-payment was due to an ongoing settlement with their bank, which had rendered their account as NPA. The Operational Creditor proposed Mr. Vigyan Prakash Arora as the Interim Resolution Professional (IRP).

## Facts

M/s Jai Ganesh Trading Co. (Operational Creditor) filed a petition against Addinath Rubbers Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP. The Corporate Debtor was incorporated on 31.12.2017 and is engaged in manufacturing rubber products. The Operational Creditor supplied raw materials to the Corporate Debtor, issuing invoices from 10.05.2016 to 30.10.2018. The total debt claimed was ₹55,28,133/-. A demand notice was issued on 31.10.2018. The Corporate Debtor replied on 07.11.2018, denying the liability and citing an ongoing settlement with their bank, which had rendered their account as NPA. The Corporate Debtor also stated that they would clear all dues once the matter was resolved. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9(2) of the Insolvency and …

**Ratio:** Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016 stipulates that the

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**Reasoning:** The Adjudicating Authority noted that no objections were raised to the completeness of

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**Interpretation:** The completeness of the application is a prerequisite for its admission under

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**Application:** In this case, the Adjudicating Authority found that the application was

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** M/s Jai Ganesh…
- **Respondents:** Addinath Rubbers…
- **Advocates:** Adhiraj Bh…; Atul V.…

## Timeline

- **2016-05-10 — Invoices…**: Operational Creditor started…
- **2018-10-30 — Invoices…**: Operational Creditor issued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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