# In the matter of ARC Lamicraft Private Limited C.P. (I.B) No. 633-9-NCLT-AHM-2018

> NCLT judgment dated 2020-06-03. Citation: TCN-2020-NCLT-01249. The case pertains to an application filed by MP Resources, an operational creditor, under…

- **Court:** NCLT
- **Order date:** 3 Jun 2020
- **Citation:** TCN-2020-NCLT-01249
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arc-lamicraft-private-limited-cp-ib-no-633-9-nclt-ahm-2018-83503af5

## Summary

### Background

The case pertains to an application filed by MP Resources, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against ARC Lamicraft Private Limited, the corporate debtor, due to unpaid operational debt. The operational creditor claimed that the corporate debtor defaulted on payments for the supply of goods, including Absorbent, Kraft, Paper, Formaldehyde, and Phenol. The corporate debtor disputed the debt, alleging defective and inferior quality of goods supplied. The NCLT Ahmedabad Bench considered the application and the submissions made by both parties.

## Facts

MP Resources, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against ARC Lamicraft Private Limited, the corporate debtor. ARC Lamicraft Private Limited was incorporated on 23.01.2007. The operational creditor claimed that the corporate debtor owed Rs. 4,86,63,554.00 along with interest at 24% per annum for the supply of goods like Absorbent, Kraft, Paper, Formaldehyde, and Phenol. The first default occurred on 06.04.2016. A demand notice in Form 3 was issued on 24.11.2018 and received by the corporate debtor on 27.11.2018. The application was filed on 20.12.2018. The corporate debtor contended that the goods supplied were defective and of inferior

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for an

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**Reasoning:** The NCLT considered the materials and papers filed by the petitioner and found that the

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**Interpretation:** Section 9 of the IBC requires the application to be complete in all respects,

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**Application:** The NCLT determined that the application filed by MP Resources met the

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** MP Reso…
- **Respondents:** ARC Lamicraft…

## Timeline

- **2007-01-23 — Incorporation of…**: ARC Lamicraft Private…
- **2016-04-06 — First De…**: The first default by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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