# In the matter of Borkar Color Packs Pvt. Ltd. CP No. 1231-I&BP-2018

> NCLT judgment dated 2018-11-01. Citation: TCN-2018-NCLT-00399. Deevya Shakti Paper Mills (P) Ltd. filed a Company Petition against Borkar Color Packs Private…

- **Court:** NCLT
- **Order date:** 1 Nov 2018
- **Citation:** TCN-2018-NCLT-00399
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/borkar-color-packs-pvt-ltd-cp-no-1231-ibp-2018-bc887eaa

## Summary

### Background

Deevya Shakti Paper Mills (P) Ltd. filed a Company Petition against Borkar Color Packs Private Limited under Section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petitioner claimed that the corporate debtor defaulted in making payment of Rs. 52,20,560/-, including interest at 24% p.a. The corporate debtor disputed the claim, alleging discrepancies in the amount due and suppression of documents by the petitioner. The petitioner supplied coated duplex paper boxes to the corporate debtor and raised invoices until 10.07.2017.

## Facts

Deevya Shakti Paper Mills (P) Ltd. (Petitioner) supplied coated duplex paper boxes to Borkar Color Packs Private Limited (Corporate Debtor) until 10.07.2017. The Petitioner claimed that the Corporate Debtor defaulted on payments amounting to Rs. 52,20,560/-, including interest at 24% p.a. The Petitioner issued a demand notice in Form 3 on 07.03.2018. The Corporate Debtor contended that the Petitioner suppressed documents and that there were discrepancies in the amounts claimed at different times. The Corporate Debtor also argued that the interest was not agreed upon and was charged suddenly after several years. The Petitioner filed an additional affidavit on 30.05.2018 to rectify errors in the initial filings. The Corporate Debtor disputed the ledger accounts and

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a …

**Ratio:** A default occurs when a debt is due and payable, and the debtor has failed to make the

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**Reasoning:** The court acknowledged that a substantial amount might be due but found that the

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**Interpretation:** The court interpreted the evidence to suggest that there was a lack of clarity

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**Application:** The court applied this principle to the facts, noting the discrepancies in the

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Deevya Shakti…
- **Respondents:** Borkar Color…
- **Advocates:** Sheelang…; Manal Dh…; +2 more

## Timeline

- **2017-07-10 — Last Invoic…**: Petitioner supplied Coated Duplex Paper Boxes to the Corporate Debtor and raised invoices…
- **2018-03-07 — Demand N…**: Petitioner sent Demand notice to the Corporate Debtor in Form 3 calling upon the…

## 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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