# In the matter of AKP Plastics Private Limited IBA-1081-2019

> NCLT judgment dated 2019-11-21. Citation: TCN-2019-NCLT-00514. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 21 Nov 2019
- **Citation:** TCN-2019-NCLT-00514
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akp-plastics-private-limited-iba-1081-2019-6ba4371d

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s. Star Pet Trading Private Limited (Operational Creditor) against M/s. AKP Plastics Private Limited (Corporate Debtor) for defaulting in payment of ₹46,66,570 plus additional interest. The Operational Creditor supplied imported plastic raw materials to the Corporate Debtor. The Corporate Debtor issued a cheque against the dues, which was dishonored.

## Facts

M/s. Star Pet Trading Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s. AKP Plastics Private Limited (Corporate Debtor). The Corporate Debtor defaulted in paying ₹46,66,570 plus additional interest. The Operational Creditor had supplied imported plastic raw materials to the Corporate Debtor, raising two invoices and respective E-way bills dated 09.11.2018 and 12.12.2018. The Operational Creditor maintained a ledger statement reflecting the amount due and payable by the Corporate Debtor, which was ₹40,85,930. The Operational Creditor sent its ledger account reflecting ₹45,85,930 dues payable as on 4.11.2019 along with a claim of interest of ₹5,80,640 @18% until 30.06.2019. The Corporate

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has proved the existence of debt and default on the part of the …

**Ratio:** The legal principle is that an application under Section 9 of the Insolvency and

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**Reasoning:** The court reasoned that the Operational Creditor had placed material on record showing

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**Interpretation:** The interpretation is that if the Operational Creditor provides sufficient

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**Application:** In this case, the Operational Creditor provided invoices, ledger statements,

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** Star Pet Trading…
- **Respondents:** AKP Plastics…

## Timeline

- **2018-11-09 — Invoice…**: One of the invoices raised by…
- **2018-12-12 — Invoice…**: Another invoice raised by…

## 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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