# In the matter of AL-Dua Processing Private Limited Company petition No. IB-1803-ND-2018

> NCLT judgment dated 2021-09-07. Citation: TCN-2021-NCLT-01175. M/s. Supreme Packaging Industries filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 7 Sept 2021
- **Citation:** TCN-2021-NCLT-01175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/al-dua-processing-private-limited-company-petition-no-ib-1803-nd-2018-98b36e75

## Summary

### Background

M/s. Supreme Packaging Industries filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Al-Dua Food Processing Private Limited, claiming an outstanding debt arising from the supply of plastic packaging material. The applicant contended that the corporate debtor failed to make payments within the agreed 45-day period, leading to an accumulation of debt amounting to Rs. 26,69,373/- along with interest. The corporate debtor raised objections, claiming that the debt was transferred to M/s. MK Overseas Pvt. Ltd. and that the applicant had consented to this transfer. The applicant disputed this claim, alleging forgery and fabrication of documents by the corporate debtor.

## Facts

M/s. Supreme Packaging Industries (the applicant) filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against M/s. Al-Dua Food Processing Private Limited (the corporate debtor), seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The applicant claimed that the corporate debtor owed a debt of Rs. 26,69,373/- plus interest, arising from the supply of plastic packaging material. The applicant stated that the corporate debtor failed to make payments within 45 days of delivery, as agreed. The corporate debtor acknowledged the debt but claimed it was transferred to M/s. MK Overseas Pvt. Ltd., with the applicant's consent. The applicant disputed this, alleging forgery of a consent letter. The corporate debtor also

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The court considered the documents on record and submissions made, and observed that the

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**Interpretation:** Section 9 provides the framework for an operational creditor to trigger CIRP

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**Application:** The court found that the application was complete and that the corporate debtor

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## Parties

- **Judges:** DEEPTI M…; SUMITA PURK…; +1 more
- **Appellants:** M/s Supreme…
- **Respondents:** M/s. Al-Dua Food…

## Timeline

- **2017-12-11 — Purchase Ord…**: The debt arose from transactions pertaining to the supply of plastic packaging material…
- **2017-12-17 — Supply and Delivery of…**: Materials were duly supplied and delivered on 17.12.2017, and invoices of Rs.1,92,045/-…

## Legal provisions

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

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