# In the matter of Govinda Industries Private Limited C.P. No. 4221-IBC-MB-2019

> NCLT judgment dated 2021-12-15. Citation: TCN-2021-NCLT-00166. The operational creditor filed a company petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 15 Dec 2021
- **Citation:** TCN-2021-NCLT-00166
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/govinda-industries-private-limited-cp-no-4221-ibc-mb-2019-9e323c2c

## Summary

### Background

The operational creditor filed a company petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process against the corporate debtor for an operational debt of Rs. 45,00,119/-.

## Facts

Power2Sme Private Limited, the operational creditor, filed a company petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudication Authority) Rules, 2016. The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) against Govinda Industries Private Limited, the corporate debtor, for an operational debt amounting to Rs. 45,00,119/-. The operational creditor is in the business of procuring and selling raw materials, consumables, operational supplies, and industrial goods to micro, small, and medium enterprises (SMEs). The corporate debtor approached the operational creditor for the purchase of Polymer (LLDPE) of a particular specification, placing various

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## Issues and analysis

### Issue 1: Whether the corporate debtor committed a …

**Ratio:** A default in payment of operational debt is established when the corporate debtor fails

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**Reasoning:** The corporate debtor failed to appear despite service of notice and was set ex-parte. The

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**Interpretation:** The court interpreted **Section 9** of the IBC to mean that if an operational

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**Application:** The court applied this interpretation by noting that the corporate debtor's

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Power2SME PRIVATE…
- **Respondents:** Govinda Industries…; Amish G…
- **Advocates:** Anirudh B…; Amish G…; +2 more

## Timeline

- **October 30, 2018 — Purchase Order…**: Corporate Debtor placed Purchase Order No. GI 180049 for 32,000 Kg. of Polymer (LLDPE)…
- **November 1, 2018 — Purchase Order GI…**: Corporate Debtor placed Purchase Order No. GI 1800450 for 9,000 Kg. of Polymer (LLDPE)…

## 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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