# In the matter of Ess Dee Aluminium Limited C.P.(IB) No. 157-KB-2018

> NCLT judgment dated 2018-06-18. Citation: TCN-2018-NCLT-01254. The case involves an application filed by Cytech Coatings Private Limited, an operational…

- **Court:** NCLT
- **Order date:** 18 Jun 2018
- **Citation:** TCN-2018-NCLT-01254
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ess-dee-aluminium-limited-cpib-no-157-kb-2018-1dd3160e

## Summary

### Background

The case involves an application filed by Cytech Coatings Private Limited, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against ESS DEE Aluminium Limited, the corporate debtor, for default in payment of Rs. 16,79,104.00. The operational creditor claimed to have supplied ink as per the order placed by the corporate debtor, raising invoices for the same. A cheque issued by the corporate debtor for Rs. 4,63,590.00 was dishonoured on 21.03.2016, leading to a criminal case under Section 138/142 of the Negotiable Instruments Act, 1881. A demand notice was sent on 22.02.2017 under Section 8 of the I&B Code 2016, but the amount remained unpaid.

## Facts

Cytech Coatings Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against ESS DEE Aluminium Limited (Corporate Debtor) for defaulting on a payment of Rs. 16,79,104.00. Cytech Coatings supplied ink to ESS DEE Aluminium based on purchase orders, and invoices were raised. ESS DEE Aluminium issued a cheque for Rs. 4,63,590.00, which was dishonoured on 21.03.2016, leading to a criminal case under Section 138/142 of the Negotiable Instruments Act, 1881. A demand notice was sent on 22.02.2017 under Section 8 of the I&B Code 2016. The notice of the petition could not be served initially, so the Adjudicating Authority directed publication in newspapers. Despite publication, ESS DEE Aluminium did not

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## Issues and analysis

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

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

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**Reasoning:** The Adjudicating Authority considered the evidence presented by the Operational Creditor,

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** In this case, the Operational Creditor demonstrated that ESS DEE Aluminium

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Appellants:** Cytech Coatings…
- **Respondents:** Ess Dee Aluminium…
- **Advocates:** Sweta G…; Md. Minha…

## Timeline

- **2016-03-21 — Cheque Dish…**: Cheque issued by ESS DEE Aluminium Limited…
- **2017-02-22 — Demand Noti…**: Demand notice was sent to ESS DEE Aluminium…

## 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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