# In the matter of Cooltech Containers Pvt Ltd CP (IB) No. 599-9-NCLT-AHM-2019

> NCLT judgment dated 2020-12-17. Citation: TCN-2020-NCLT-00057. M/s. Salem Stainless Steel Suppliers Private Limited, the Operational Creditor, filed an…

- **Court:** NCLT
- **Order date:** 17 Dec 2020
- **Citation:** TCN-2020-NCLT-00057
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cooltech-containers-pvt-ltd-cp-ib-no-599-9-nclt-ahm-2019-6ef7f08d

## Summary

### Background

M/s. Salem Stainless Steel Suppliers Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Cooltech Containers Private Limited, the Corporate Debtor. The basis for the application was the Corporate Debtor's alleged default in paying an operational debt amounting to Rs. 63,30,267/-. Notice of the application was served to the Corporate Debtor, but no one appeared on their behalf, leading to an ex-parte hearing.

## Facts

M/s. Salem Stainless Steel Suppliers Private Limited (Operational Creditor) claimed that M/s. Cooltech Containers Private Limited (Corporate Debtor) defaulted on an operational debt of Rs. 63,30,267/-. The Operational Creditor supplied steel material to the Corporate Debtor, and despite repeated reminders, the Corporate Debtor failed to pay the dues. A notice under Section 8 of the Insolvency and Bankruptcy Code (IBC) was sent on 2019-05-22 to the Corporate Debtor, which was received. The Corporate Debtor raised a dispute regarding the quality of goods in their reply to the notice. The Adjudicating Authority noted that the goods were accepted and consumed. The Operational Creditor nominated Mr. Kedar Ramratan Laddha as the Interim Resolution Professional (IRP).

## 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 found the application to be defect-free and that the Operational Creditor had

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**Interpretation:** Section 9 provides the framework for operational creditors to trigger the

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**Application:** The court determined that the application met the requirements of Section 9, as

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Salem Stainless…
- **Respondents:** Cooltech Container…; Cooltech Container…

## Timeline

- **2019-05-22 — Notice under Section 8…**: A notice under Section 8 of the Insolvency and Bankruptcy Code was sent to the Corporate…
- **2020-12-15 — Date of H…**: Hearing held on 15th…

## 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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