# In the matter of Classic Bottle Caps Pvt. Ltd. (IB)-2144(ND)-2019

> NCLT judgment dated 2020-02-13. Citation: TCN-2020-NCLT-01975. M/s GAC Shipping (India) Private Limited, an operational creditor, filed a petition under…

- **Court:** NCLT
- **Order date:** 13 Feb 2020
- **Citation:** TCN-2020-NCLT-01975
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/classic-bottle-caps-pvt-ltd-ib-2144nd-2019-7ef95665

## Summary

### Background

M/s GAC Shipping (India) Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Classic Bottle Caps Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor had availed services regarding arranging and transportation of products, including custom clearance and facilitation of export-related documents, for which invoices were raised but remained unpaid.

## Facts

M/s GAC Shipping (India) Private Limited (Operational Creditor) provided services to M/s Classic Bottle Caps Pvt. Ltd. (Corporate Debtor) related to arranging and transporting bottle caps, custom clearance, and export documentation. The Operational Creditor raised invoices for these services, but the Corporate Debtor failed to fully pay them. As of the date of the petition, the total outstanding debt was Rs. 9,13,383.48. The Corporate Debtor made a partial payment of Rs. 3,00,000 towards the dues. The Operational Creditor issued a demand notice dated 2019-01-17 under Section 8 of the IBC. The Corporate Debtor initially agreed to pay Rs. 3,00,000 on 2019-01-29 and the remaining amount in four monthly installments, but this agreement was not fully honored. The

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## Issues and analysis

### Issue 1: Whether the Operational Creditor, M/s GAC Shipping (India) Private Limited, has established a …

**Ratio:** Section 9(5) of the IBC stipulates that the Adjudicating Authority (NCLT) may admit the

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**Reasoning:** The court considered the evidence presented by the Operational Creditor, including unpaid

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**Interpretation:** The legal issue centers on whether the operational creditor has provided

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**Application:** The court applied the ratio to the facts by examining the unpaid invoices and

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## Parties

- **Judges:** Ina Mal…; Shri. L. N.…
- **Appellants:** M/s GAC Shipping…
- **Respondents:** M/s Classic…

## Timeline

- **2019-01-17 — Demand N…**: Operational Creditor sent a Demand Notice to…
- **2019-01-24 — Corporate Debto…**: Corporate Debtor sent an email agreeing to pay Rs. 3,00,000 on 2019-01-29 and the balance…

## 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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