# In the matter of Akurth Chemicals (OPC) Private Limited Company Petition (IB) No. 131-ALD-2020

> NCLT judgment dated 2020-12-03. Citation: TCN-2020-NCLT-00176. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 3 Dec 2020
- **Citation:** TCN-2020-NCLT-00176
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akurth-chemicals-opc-private-limited-company-petition-ib-no-131-ald-2020-7f47e92e

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Gandhar Oil Refinery (India) Ltd., the operational creditor, against Akurth Chemicals (OPC) Private Limited, the corporate debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). The operational creditor supplied products to the corporate debtor based on purchase orders, for which invoices were raised. Despite the lapse of 60 days and repeated demands, the corporate debtor failed to pay the outstanding amount. A demand notice was issued under Section 8 of the IBC, 2016, but the corporate debtor did not fully settle the dues.

## Facts

Gandhar Oil Refinery (India) Ltd. (operational creditor) supplied products to Akurth Chemicals (OPC) Private Limited (corporate debtor) based on purchase orders. Two invoices, dated August 11, 2018, and August 13, 2018, were issued for Rs. 33,51,200. As per the terms and conditions, payment was due 60 days after invoice receipt. Despite the lapse of 60 days and repeated demands, the corporate debtor failed to pay. The operational creditor issued a demand notice under Section 8 of the IBC, 2016, dated July 26, 2019, for Rs. 39,06,489, which was received by the corporate debtor. On September 18, 2019, the corporate debtor paid a partial amount via NEFT, leaving Rs. 38,06,489 outstanding. The operational creditor filed a petition under Section 9 of the IBC, 2016, to

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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) of the IBC, 2016, specifies the conditions under which the Adjudicating

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**Reasoning:** The Adjudicating Authority considered the submissions and documents presented by the

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**Interpretation:** Section 9 of the IBC, 2016, provides a mechanism for operational creditors to

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**Application:** In this case, the Adjudicating Authority found that the operational creditor

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** Gandhar Oil…
- **Respondents:** Akurth Chemicals…

## Timeline

- **2018-08-11 — Invoice…**: Invoice dated August 11, 2018, was…
- **2018-08-13 — Invoice…**: Invoice dated August 13, 2018, 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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