# In the matter of Fizzy Foodlabs Private Limited C.P. (IB) No. 346-NCLT-MB-2019

> NCLT judgment dated 2019-09-18. Citation: TCN-2019-NCLT-01408. M/s. Color Cartons, the Operational Creditor/Applicant, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 18 Sept 2019
- **Citation:** TCN-2019-NCLT-01408
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fizzy-foodlabs-private-limited-cp-ib-no-346-nclt-mb-2019-942666e0

## Summary

### Background

M/s. Color Cartons, the Operational Creditor/Applicant, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against M/s. Fizzy Foodlabs Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The application was filed claiming a total default of ₹8,95,086/-, including interest. The Applicant supplied corrugated boxes to the Corporate Debtor as per purchase orders, and the total amount of the invoices aggregated to ₹11,46,072/-. The Corporate Debtor made part payments totaling ₹5,10,761.78/- between 03.07.2017 and 13.11.2017, leaving an outstanding balance of ₹6,35,310/-.

## Facts

M/s. Color Cartons (Operational Creditor) supplied corrugated boxes to M/s. Fizzy Foodlabs Private Limited (Corporate Debtor) based on purchase orders. Two tax invoices were issued on 23.02.2017 and 16.03.2017, totaling ₹11,46,072/-. The Corporate Debtor made part payments of ₹5,10,761.78/- between 03.07.2017 and 13.11.2017. An outstanding balance of ₹6,35,310/- remained unpaid. The Corporate Debtor admitted to the outstanding amount in its ledger account and via email dated 30.04.2018. The Operational Creditor issued a demand notice under Section 8 of the I&B Code, but the Corporate Debtor failed to reply. The Corporate Debtor later claimed the goods were defective and disputed the interest charges, but these claims were made after the stipulated period for

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the I&B Code is …

**Ratio:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP against a

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**Reasoning:** The NCLT found that the application was complete and filed in the proper form. The Demand

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**Interpretation:** Section 9 of the I&B Code sets out the requirements for an operational

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**Application:** The NCLT applied the provisions of Section 9 to the facts of the case and found

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## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** M/s. Color…
- **Respondents:** M/s. Fizzy…
- **Advocates:** Ulhas S…; Mahi L…

## Timeline

- **2017-02-23 — Tax Invoic…**: Applicant supplied "3 ply Corrugated Boxes (PS-572 SRP 12 Tray Olive & Herb and PS-573…
- **2017-03-16 — Tax Invoic…**: Applicant supplied "3 ply Corrugated Boxes (PS-572 SRP 12 Tray Olive & Herb and PS-573…

## 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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