# in the matter of Jammu Paper Pvt. Ltd. CP (IB) No. 34-Chd-J&K-2017

> NCLT judgment dated 2017-07-10. Citation: TCN-2017-NCLT-00745. M/s. Shiv Pooja Traders, an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 10 Jul 2017
- **Citation:** TCN-2017-NCLT-00745
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jammu-paper-pvt-ltd-cp-ib-no-34-chd-jk-2017-e817596b

## Summary

### Background

M/s. Shiv Pooja Traders, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Jammu Paper Pvt. Limited, the corporate debtor, for initiating insolvency resolution process due to unpaid debt. The operational creditor claimed that the corporate debtor failed to pay an outstanding amount of ₹47,41,942.70 for goods supplied. The application was initially found to have certain defects, which were subsequently rectified by the petitioner. The corporate debtor did not appear to contest the petition despite being served notice.

## Facts

M/s. Shiv Pooja Traders, the operational creditor, supplied goods (rice husk and saw dust) to Jammu Paper Pvt. Limited, the corporate debtor, from 2005 to 04.02.2015. As of 04.02.2015, an amount of ₹47,41,942.70 was outstanding. The corporate debtor acknowledged the debt in its ledger account for the period 01.04.2013 to 30.08.2014, showing an outstanding amount of ₹56,72,055.70. The corporate debtor paid ₹10 lacs on 24.09.2014. The operational creditor sent a demand notice dated 20.03.2017, which was delivered to the corporate debtor on 23.03.2017. A subsequent legal notice dated 16.11.2016 was also sent. The Managing Director of the corporate debtor admitted the outstanding debt of ₹60,15,478.70 as of 09.06.2014 and promised to pay it back with 12% interest per

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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(5) of the IBC stipulates that the Adjudicating Authority shall admit the

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**Reasoning:** The court noted that the application was filed in the prescribed format and the defects

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**Interpretation:** Section 9(5) mandates the Adjudicating Authority to verify the completeness of

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**Application:** The court found that the application was complete and in order after the

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** M/s. Shiv Pooja…
- **Respondents:** Jammu Paper Pvt.…

## Timeline

- **2005-01-01 — Business Deali…**: The petitioner had business dealings with the respondent-Corporate Debtor and supplied…
- **2014-06-11 — Acknowledgemen…**: Learned counsel for petitioner further refers to the letter of acknowledgement of debt…

## 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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