# In the matter of Chowdhury Rubbers & Chemicals Private Limited Company Petition No. IB- 218-PB-2018

> NCLT judgment dated 2021-06-03. Citation: TCN-2021-NCLT-02035. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s…

- **Court:** NCLT
- **Order date:** 3 Jun 2021
- **Citation:** TCN-2021-NCLT-02035
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chowdhury-rubbers-chemicals-private-limited-company-petition-no-ib-218-pb-2018-ab1ce634

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s SE Power Limited (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against Chowdhry Rubber & Chemical Private Limited (Corporate Debtor). The applicant claimed that the corporate debtor defaulted on payments for goods supplied. The corporate debtor disputed the claim, alleging the supply of defective material and claiming losses.

## Facts

M/s SE Power Limited (the applicant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Chowdhry Rubber & Chemical Private Limited (the corporate debtor). The applicant claimed that the corporate debtor had defaulted on payments for goods supplied between 29.02.2016 and 09.08.2016, totaling Rs 16,31,176/-. The corporate debtor made part payments, leaving an outstanding amount of Rs 8,42,863/-. The applicant issued a demand notice on 09.11.2017 under Section 8 of the IBC. The corporate debtor replied to the notice, raising a dispute regarding the quality of goods supplied and claiming losses. The applicant filed a rejoinder, asserting that the goods were of superior

…

## Issues and analysis

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

**Ratio:** Section 9(5) of the IBC, 2016 states that the Adjudicating Authority shall admit the

…

**Reasoning:** The NCLT observed that the default had occurred with respect to the payment of the

…

**Interpretation:** The legal principle is that if the application is complete and a default has

…

**Application:** The NCLT found that the application was complete and that the corporate debtor

…

## Parties

- **Judges:** DEEPTI M…; SUMITA PURK…; +1 more
- **Appellants:** M/S SE POWER…
- **Respondents:** CHOWDHRY RUBBER &…

## Timeline

- **2016-02-29 — Invoice Perio…**: Goods were supplied and invoices were…
- **2016-08-09 — Invoice Per…**: Goods were supplied and invoices were…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/chowdhury-rubbers-chemicals-private-limited-company-petition-no-ib-218-pb-2018-ab1ce634