# In the matter of Honest Derivatives Private Limited C.P. (I.B) No. 393-9-NCLT-AHM-2018

> NCLT judgment dated 2020-05-28. Citation: TCN-2020-NCLT-01302. The case involves an application filed by Solartex India Private Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 28 May 2020
- **Citation:** TCN-2020-NCLT-01302
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/honest-derivatives-private-limited-cp-ib-no-393-9-nclt-ahm-2018-6df48e78

## Summary

### Background

The case involves an application filed by Solartex India Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Honest Derivatives Private Limited (Corporate Debtor) for unpaid operational debt. The operational debt pertains to the supply of goods (Indonesian Coal) for which invoices were raised, but payment was not made. The Corporate Debtor claimed there was a pre-existing dispute and also filed suits against the Operational Creditor and its associate concern Rawalwasia Textile Industries Private Limited.

## Facts

Solartex India Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Honest Derivatives Private Limited (Corporate Debtor) for an unpaid operational debt of INR 21,57,700.38, including interest. The debt arose from the supply of 500MT of Indonesian Coal based on a purchase order dated 27.10.2016. The Operational Creditor fulfilled the order by supplying the required quantity as per specifications. Invoices were raised, but the Corporate Debtor failed to make payments. The Operational Creditor issued a demand notice on 03.02.2018. The Corporate Debtor replied on 19.02.2018, denying the debt and claiming losses. The Corporate Debtor also claimed a pre-existing dispute and filed suits against the

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## Issues and analysis

### Issue 1: Whether the petition 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 Adjudicating Authority considered the material on record and was satisfied that the

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

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**Application:** In this case, the Adjudicating Authority found that the Operational Creditor

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** SOLARTEX INDIA…
- **Respondents:** Honest Derivatives…; Honest Derivatives…

## Timeline

- **2016-10-27 — Purchase…**: Corporate Debtor placed purchase order HDPL/16-17/586 for supply of 500MT of Indonesian…
- **2016-11-10 — Date of D…**: Date of Default is…

## 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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