# In the matter of Bengal Chemicals and Pharmaceuticals Limited CP(IB) No. 1472-KB-2018

> NCLT judgment dated 2019-11-01. Citation: TCN-2019-NCLT-00746. UEM India Private Limited, the Operational Creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 1 Nov 2019
- **Citation:** TCN-2019-NCLT-00746
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bengal-chemicals-and-pharmaceuticals-limited-cpib-no-1472-kb-2018-0d79ebb7

## Summary

### Background

UEM India Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Bengal Chemicals & Pharmaceuticals Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The application was based on a default of Rs. 38,10,206/- along with interest. The Operational Creditor had carried out work for the Corporate Debtor related to designing and construction of a water treatment plant, and a work completion certificate was issued on February 1, 2013. All payments were released except for the aforementioned sum, which comprised security and performance guarantee. Despite repeated requests, the amount remained unpaid, leading the Operational Creditor to serve a

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## Facts

UEM India Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Bengal Chemicals & Pharmaceuticals Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default amount of Rs. 38,10,206/- along with interest. The Operational Creditor was engaged in the business of designing and construction of water treatment plants. Pursuant to a tender floated by the Corporate Debtor, the Operational Creditor carried out work at the designated site of the Corporate Debtor. A work completion certificate was issued on February 1, 2013. All payments were released to the Operational Creditor except for Rs. 38,10,206/-, which comprised

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court considered the submissions made by both sides and perused the matter on record.

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

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**Application:** The court found that the Operational Creditor had discharged its contractual

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** UEM India Private…
- **Respondents:** Bengal Chemicals…

## Timeline

- **2013-02-01 — Work Completion…**: Work completion certificate…
- **2017-11-20 — Section 8…**: Operational Creditor served a notice under…

## 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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