# In the matter of ARK Industries Private Limited CP (IB)2230-MB-C-IV-2019

> NCLT judgment dated 2021-09-23. Citation: TCN-2021-NCLT-01019. The case originates from a Company Petition filed under Section 9 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 23 Sept 2021
- **Citation:** TCN-2021-NCLT-01019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ark-industries-private-limited-cp-ib2230-mb-c-iv-2019-648fab12

## Summary

### Background

The case originates from a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Benteler Trading International GmbH (Operational Creditor) seeking to initiate Corporate Insolvency Resolution Process (CIRP) against ARK Industries Private Limited (Corporate Debtor). The Operational Creditor claims a sum of USD 1,249,134.61 as on 13.12.2016. The Petitioner and the Corporate Debtor executed supply agreements for the sale of brass scrap honey, copper scrap berry, copper scrap berry candy, and clove berry/candy. The payment terms provided a credit period of 180 days from the bill of lading. The parties further executed a debt acknowledgement and settlement agreement dated 13.03.2017, wherein the Corporate Debtor acknowledged a debt of

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## Facts

Benteler Trading International GmbH (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against ARK Industries Private Limited (Corporate Debtor) for a debt of USD 1,249,134.61 as of 13.12.2016. The parties had entered into multiple supply agreements for brass scrap honey, copper scrap berry, and other similar items. The payment terms included a credit period of 180 days from the bill of lading. A debt acknowledgement and settlement agreement was executed on 13.03.2017, where the Corporate Debtor acknowledged a debt of USD 2,157,764.35. The Corporate Debtor later raised disputes regarding the quality of goods, non-receipt of invoices, and the absence of an

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the IBC is …

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

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**Reasoning:** The NCLT found that the Operational Creditor had demonstrated the existence of a debt and

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The NCLT applied Section 9 of the IBC to the facts of the case, finding that

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## Parties

- **Judges:** RAJESH S…; SUCHITRA KANUPARTH…; +1 more
- **Appellants:** Benteler Trading…
- **Respondents:** ARK Industries…

## Timeline

- **2016-12-13 — Default…**: Operational Creditor claims…
- **2017-03-13 — Debt Acknowledgement…**: Parties executed a debt…

## 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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