# In the matter of G P Cottfab Private Limited Company Petition No. (IB)-159-9-JPR-2019

> NCLT judgment dated 2019-09-12. Citation: TCN-2019-NCLT-01491. M/S Sona Processors (India) Limited, claiming to be an Operational Creditor, filed an…

- **Court:** NCLT
- **Order date:** 12 Sept 2019
- **Citation:** TCN-2019-NCLT-01491
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/g-p-cottfab-private-limited-company-petition-no-ib-159-9-jpr-2019-ba748893

## Summary

### Background

M/S Sona Processors (India) Limited, claiming to be an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against G.P. Cottfab Private Limited, the Corporate Debtor. The application was filed due to non-payment of dues for raw material processing. The applicant is a public limited company incorporated under the Companies Act, 1956, and the corporate debtor is a private limited company incorporated under the Companies Act, 2013.

## Facts

M/S Sona Processors (India) Limited, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against G.P. Cottfab Private Limited, the corporate debtor. The applicant processed raw materials for the corporate debtor and raised invoices for the same. The corporate debtor made payments via cheques, but several cheques bounced due to 'Payment stopped by drawer' or 'Exceeds Arrangements'. The applicant sent a demand notice under Section 8 of the IBC, 2016, for Rs. 1,23,94,569/-, including interest. The notice was returned undelivered. The applicant then sent the demand notice via email, but the corporate debtor did not respond or raise any dispute. The total debt

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## Issues and analysis

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

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

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**Reasoning:** The Tribunal found that the applicant is an operational creditor and the corporate debtor

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

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**Application:** The applicant, being an operational creditor, filed the application as the

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## Parties

- **Judges:** POONDLA BHASKARA…; RaghuNa…
- **Appellants:** M/S Sona Processor…
- **Respondents:** G.P. Cottfab…
- **Advocates:** Ankit S…; Prakul Kh…

## Timeline

- **2017-12-28 — Invoice Perio…**: Start date of the period for which invoices were raised by the applicant against the…
- **2018-04-12 — Invoice Per…**: End date of the period for which invoices were raised by the applicant against the…

## 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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