# In the matter of ADI Automotives Private Limited CP (IB) No. 259-Chd-Hry-2019

> NCLT judgment dated 2020-01-08. Citation: TCN-2020-NCLT-02432. S K Uni Print Private Limited, the operational creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 8 Jan 2020
- **Citation:** TCN-2020-NCLT-02432
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adi-automotives-private-limited-cp-ib-no-259-chd-hry-2019-7ae2bd1f

## Summary

### Background

S K Uni Print Private Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against ADI Automotives Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for raw materials supplied since February 2010. The corporate debtor disputed the claim, citing business losses and financial constraints.

## Facts

S K Uni Print Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against ADI Automotives Private Limited (Corporate Debtor). The Operational Creditor had been supplying raw materials to the Corporate Debtor since February 2010, maintaining a running account where payments were adjusted on a First in First Out (FIFO) basis. The Corporate Debtor allegedly defaulted on payments, with an outstanding amount of ₹4,85,239.34 plus 12% interest per annum. The last payment received from the Corporate Debtor was ₹10 lacs on 28.03.2018. The Operational Creditor issued a demand notice on 17.04.2019, which the Corporate Debtor disputed on 26.04.2019, claiming

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor under Section 9 of the Insolvency and …

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

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**Reasoning:** The NCLT observed that no objections were raised regarding the completeness of the

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

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**Application:** In this case, the NCLT found that the application was complete as no objections

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** S K Uni Print…
- **Respondents:** ADI Automotives…

## Timeline

- **2010-02-01 — Commencement of…**: The operational creditor started transacting with the corporate debtor, supplying raw…
- **2018-03-28 — Last Payment…**: The last payment of ₹10 lacs was…

## 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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