# In the matter of Iconium Leather Works Private Limited C.P. (IB) No.136-BB-2020

> NCLT judgment dated 2021-02-05. Citation: TCN-2021-NCLT-03114. M/s. Bhansali Chemicals Private Limited filed C.P (IB) No.136/BB/2020 under Section 9 of the…

- **Court:** NCLT
- **Order date:** 5 Feb 2021
- **Citation:** TCN-2021-NCLT-03114
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/iconium-leather-works-private-limited-cp-ib-no136-bb-2020-f9554530

## Summary

### Background

M/s. Bhansali Chemicals Private Limited filed C.P (IB) No.136/BB/2020 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Iconium Leather Works Private Limited, alleging default in payment of dues. The Operational Creditor claimed that the Corporate Debtor failed to pay an amount of Rs.31,01,661/- towards the supplies made and Rs.4,58,579/- towards interest thereof at the rate of 18% for the delayed payment totalling to Rs.35,60,210/-. A demand notice was issued on 25.10.2019, but the Corporate Debtor failed to respond.

## Facts

M/s. Bhansali Chemicals Private Limited (Operational Creditor) filed a petition under Section 9 of the IBC, 2016, against M/s. Iconium Leather Works Private Limited (Corporate Debtor) due to a default in payment. The Operational Creditor supplied chemicals to the Corporate Debtor between 01/10/2018 and 15/10/2019. The Corporate Debtor failed to pay Rs.31,01,661/- for the supplies and Rs.4,58,579/- as interest at 18% for delayed payment, totaling Rs.35,60,210/-. A demand notice was issued on 25.10.2019. The Corporate Debtor paid Rs.4,26,000/-, but failed to pay the remaining amount. The Operational Creditor argued that the Corporate Debtor's failure to pay indicated insolvency. The Corporate Debtor did not dispute the debt and default and did not appear before the

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the IBC, 2016, is …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The Tribunal noted that the debt and default were not disputed by the Corporate Debtor,

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

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**Application:** The Tribunal applied Section 9 to the facts, finding that the Operational

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. Bhansali…
- **Respondents:** M/s. Iconium…

## Timeline

- **2018-10-01 — Supply of Ch…**: Operational Creditor supplied chemicals to Corporate Debtor between 01/10/2018 and…
- **2019-10-15 — Supply of Ch…**: Operational Creditor supplied chemicals to Corporate Debtor between 01/10/2018 and…

## 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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