# In the matter of Harsh Speciality Coating Private Limited IB-462-(ND)-2020

> NCLT judgment dated 2021-12-22. Citation: TCN-2021-NCLT-00083. The Operational Creditor, Sherwin Williams Coatings Pvt. Ltd., filed an application under…

- **Court:** NCLT
- **Order date:** 22 Dec 2021
- **Citation:** TCN-2021-NCLT-00083
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/harsh-speciality-coating-private-limited-ib-462-nd-2020-5b54ded1

## Summary

### Background

The Operational Creditor, Sherwin Williams Coatings Pvt. Ltd., filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Harsh Speciality Coating Private Limited, for allegedly defaulting on a debt of Rs. 58,08,111/-. The Operational Creditor claimed to have supplied goods to the Corporate Debtor, raised invoices aggregating to Rs. 5,15,21,777, against which the Corporate Debtor made payments aggregating to Rs. 4,57,13,666/-, leaving a balance outstanding. A statutory demand notice was issued under section 8 of IBC, 2016, but was returned undelivered. The Operational Creditor also emailed the demand notice, but received no response. The Operational

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## Facts

Sherwin Williams Coatings Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Harsh Speciality Coating Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on a debt of Rs. 58,08,111/-. The Operational Creditor supplied wood coating products to the Corporate Debtor, raising invoices aggregating to Rs. 5,15,21,777. The Corporate Debtor made payments aggregating to Rs. 4,57,13,666/-, leaving a balance outstanding. A statutory demand notice was issued on 13.11.2019 under section 8 of IBC, 2016, but was returned undelivered. The demand notice was also emailed on 19.11.2019, but received no response. The last payment received from 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, allows an operational creditor to

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**Reasoning:** The Tribunal considered the documents and submissions made 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:** The Tribunal found that the Operational Creditor had complied with the

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## Parties

- **Judges:** SH. P.S.N.…; SH. RAHUL…
- **Appellants:** SHERWIN WILLIAMS…
- **Respondents:** HARSH SPECIALITY…

## Timeline

- **2019-08-16 — Last Payment…**: The Operational Creditor received the…
- **2019-11-13 — Statutory Demand Notice…**: A Statutory Demand Notice in Form-3 under…

## 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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