# In the matter of Benlon India Ltd. IB-(1612)-ND-2018

> NCLT judgment dated 2018-12-19. Citation: TCN-2018-NCLT-00044. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 19 Dec 2018
- **Citation:** TCN-2018-NCLT-00044
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/benlon-india-ltd-ib-1612-nd-2018-3836b2cc

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Gaurav Goel, proprietor of Riyal Packers, an operational creditor, against Benlon India Ltd., the corporate debtor, for unpaid dues. The operational creditor claimed that the corporate debtor owed a sum of Rs. 35,70,888.40 along with interest for materials supplied between 2018-04-02 and 2018-10-09. Despite repeated reminders, the corporate debtor failed to make full payment, leading to the issuance of a demand notice under Section 8 of the IBC, which went unanswered.

## Facts

Gaurav Goel, operating as Riyal Packers, is an operational creditor to Benlon India Ltd. Riyal Packers supplied materials to Benlon India Ltd. between April 2, 2018, and October 9, 2018. Benlon India Ltd. owes Riyal Packers Rs. 35,70,888.40 plus interest. Benlon India Ltd. made a partial payment but failed to pay the remaining amount despite repeated reminders. A demand notice was issued to Benlon India Ltd. on October 24, 2018, under Section 8 of the IBC, but Benlon India Ltd. did not respond. Benlon India Ltd. admitted to the debt but claimed inability to pay. The operational creditor then filed a petition under Section 9 of the IBC to initiate the Corporate Insolvency Resolution Process (CIRP).

## Issues and analysis

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

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

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**Reasoning:** The court reasoned that the corporate debtor admitted the claim of the operational

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**Interpretation:** Section 9 of the IBC is interpreted to provide a mechanism for operational

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**Application:** In this case, the corporate debtor, Benlon India Ltd., admitted to owing Rs.

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## Parties

- **Judges:** Ina Mal…; Deepa Kr…; +1 more
- **Appellants:** Gaurav…
- **Respondents:** Benlon Indi…

## Timeline

- **2018-04-02 — Start of Materi…**: Operational Creditor started supplying…
- **2018-10-09 — End of Materia…**: Operational Creditor stopped supplying…

## 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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