# In the matter of Guntur Multi Packaging Industries Pvt. Ltd. CP (IB) No. 215-9-AMR-2019

> NCLT judgment dated 2021-11-08. Citation: TCN-2021-NCLT-00584. The case pertains to an application filed by M/s. Sudhaavarshini Paper Mills Pvt Ltd…

- **Court:** NCLT
- **Order date:** 8 Nov 2021
- **Citation:** TCN-2021-NCLT-00584
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/guntur-multi-packaging-industries-pvt-ltd-cp-ib-no-215-9-amr-2019-030e8853

## Summary

### Background

The case pertains to an application filed by M/s. Sudhaavarshini Paper Mills Pvt Ltd (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s. Guntur Multi Packaging Industries Pvt Ltd (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted in making payment of Rs. 10,12,604 towards invoices raised for goods supplied.

## Facts

M/s. Sudhaavarshini Paper Mills Pvt Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Guntur Multi Packaging Industries Pvt Ltd (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments amounting to Rs. 10,12,604 for goods supplied. A demand notice was issued by the Operational Creditor on 2019-02-18, to which the Corporate Debtor replied on 2019-02-22, stating inability to pay due to unfavorable circumstances. The Corporate Debtor failed to make any payments. The Corporate Debtor did not file a counter to the petition despite several adjournments, and their right to do so was forfeited by the

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## 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, read with Rule 6 of the Insolvency

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**Reasoning:** The court considered the evidence presented by the Operational Creditor, including the

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

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**Application:** Given the default in payment and the Corporate Debtor's failure to contest the

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## Parties

- **Judges:** TELAPROLU…
- **Respondents:** Guntur Multi…
- **Advocates:** Shravya M…

## Timeline

- **2019-02-18 — Demand Notice…**: The Operational Creditor issued a demand notice to the Corporate Debtor for the…
- **2019-02-22 — Reply to Deman…**: The Corporate Debtor replied to the demand notice, stating inability to pay due to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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