# In the matter of A.P. Enterprises Private Limited CP (IB) No. 119-Chd-Chd-2018

> NCLT judgment dated 2018-11-13. Citation: TCN-2018-NCLT-00347. The petition was filed by Bhagwati Kripa Paper Mills Pvt. Ltd. under Section 9 of the…

- **Court:** NCLT
- **Order date:** 13 Nov 2018
- **Citation:** TCN-2018-NCLT-00347
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ap-enterprises-private-limited-cp-ib-no-119-chd-chd-2018-1d28d4ea

## Summary

### Background

The petition was filed by Bhagwati Kripa Paper Mills Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against A.P. Enterprises Private Limited, the corporate debtor. The operational creditor, Bhagwati Kripa Paper Mills, is a manufacturer and supplier of high-quality kraft paper. They supplied goods to the corporate debtor based on purchase orders, raising sale orders and invoices periodically. The operational creditor passed a resolution on 23.03.2018 to file the petition against the respondent-corporate debtor.

## Facts

Bhagwati Kripa Paper Mills Pvt. Ltd. (operational creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against A.P. Enterprises Private Limited (corporate debtor) for initiating the Insolvency Resolution Process. Bhagwati Kripa Paper Mills is a manufacturer and supplier of kraft paper, supplying goods to A.P. Enterprises based on purchase orders. The last invoice was issued on 08.11.2017. The outstanding liability was ₹4,61,85,364.50/- as on 09.02.2018, confirmed by the Director of A.P. Enterprises, Mr. Narinder Kumar Garg. A.P. Enterprises agreed to pay ₹22 lakhs, out of which ₹8 lakhs was transferred on 09.02.2018 and ₹5 lakhs on 23.02.2018. Cheques worth ₹60 lakhs were issued, but ₹50 lakhs worth of cheques were dishonored. A

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## Issues and analysis

### Issue 1: Whether there is an existence of dispute between the parties relating to the operational debt …

**Ratio:** The adjudicating authority must reject the application under Section 9(5)(2)(d) if notice

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**Reasoning:** The court found that the respondent-corporate debtor admitted the liability through

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**Interpretation:** The court interpreted the provisions of Section 9(5)(2)(d) of the Insolvency

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**Application:** The court applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Bhagwati Kripa…
- **Respondents:** A.P. Enterprises…
- **Advocates:** Sahil N…; Vipul J…; +1 more

## Timeline

- **2017-11-08 — Last Invoice…**: The last invoice for the goods supplied by the operational creditor to the corporate…
- **2018-02-09 — Confirmation of…**: The Director of A.P. Enterprises, Mr. Narinder Kumar Garg, confirmed the outstanding…

## 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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