# 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-01032. 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-01032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ark-industries-private-limited-cp-ib2230-mb-c-iv-2019-d202840d

## 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 claimed 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

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## Facts

Benteler Trading International GmbH (Operational Creditor) filed a petition under Section 9 of the IBC against ARK Industries Private Limited (Corporate Debtor) seeking to initiate CIRP for a debt of USD 1,249,134.61 as of 13.12.2016. The parties had entered into supply agreements for brass scrap honey, copper scrap berry, copper scrap berry candy, and clove berry/candy, with a credit period of 180 days. 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 claimed that interest could not be claimed, invoices were not received, stamp duty was not paid, there was an arbitration clause, and there was a prior dispute regarding the quality of goods. The

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## Issues and analysis

### Issue 1: Whether the Petitioner has demonstrated that …

**Ratio:** The admission of liability under the debt acknowledgement and settlement agreement is a

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**Reasoning:** The NCLT relied on the debt acknowledgement and settlement agreement dated 13.03.2017,

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**Interpretation:** The debt acknowledgement and settlement agreement is interpreted as a binding

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**Application:** The Corporate Debtor's acknowledgement of the debt in the agreement, despite

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## Parties

- **Judges:** RAJESH S…; SUCHITRAKAN…
- **Appellants:** Benteler Trading…
- **Respondents:** ARK Industries…

## Timeline

- **2016-12-13 — Default…**: Date of default as…
- **2017-03-13 — Debt Acknowledgement…**: Parties executed a debt…

## 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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