# In the matter of AP Coated Drums & Barrels Pvt. Ltd. C.P. No. 1365-I&BC-2018

> NCLT judgment dated 2018-10-16. Citation: TCN-2018-NCLT-00563. The Operational Creditor filed a Company Petition under Section 9 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 16 Oct 2018
- **Citation:** TCN-2018-NCLT-00563
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ap-coated-drums-barrels-pvt-ltd-cp-no-1365-ibc-2018-49bdae3e

## Summary

### Background

The Operational Creditor filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code against the Corporate Debtor, alleging default in payment of ₹67,29,188/-. The Operational Creditor had been supplying goods, specifically 'CR Sheet', to the Corporate Debtor for the past four years and had raised invoices. A portion of the payment against two invoices related to the 'CR Sheet' supplied on November 30, 2014, remained unpaid, with an outstanding amount aggregating to ₹38,82,916/-. The Corporate Debtor made partial payments, leaving a balance principal of ₹37,72,430/-. The last payment of ₹10,00,000/- was made on September 15 & 18, 2017. The invoices included an interest provision of 24% per annum. The goods were accepted and utilized by the

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## Facts

The Operational Creditor, Haresh Dharmani, supplied goods ('CR Sheet') to the Corporate Debtor, AP Coated Drums & Barrels Pvt. Ltd., for four years. An amount of ₹38,82,916/- remained unpaid against invoices for goods supplied on November 30, 2014. The Corporate Debtor made partial payments, leaving a principal balance of ₹37,72,430/-. The last payment of ₹10,00,000/- was made on September 15 & 18, 2017. The invoices included a 24% per annum interest provision. The Corporate Debtor accepted and utilized the goods without protest. The Operational Creditor issued VAT Confirmation Certificates for FY 2013-2014, 2014-2015, and 2015-2016. The Corporate Debtor claimed CENVAT credit of ₹28,13,569/- and VAT set-off of ₹18,01,726/-. The Operational Creditor issued a

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor for initiation of Corporate Insolvency …

**Ratio:** The adjudicating authority is required to ascertain whether there is a default of the

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**Reasoning:** The court found that the default of the operational debt was more than ₹1,00,000/-. The

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**Interpretation:** The Insolvency and Bankruptcy Code mandates the admission of a petition if a

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**Application:** The court applied the ratio to the facts, noting that the Corporate Debtor had

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Haresh Dh…
- **Respondents:** AP Coated Drums &…

## Timeline

- **2014-11-30 — Supply of 'CR…**: Operational Creditor supplied 'CR…
- **2017-09-15 — Last Pay…**: Corporate Debtor made the last payment of…

## 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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