# In the matter of Jericho Chemicals LLP CP (IB) No. 40-GB-2019

> NCLT judgment dated 2021-03-22. Citation: TCN-2021-NCLT-02615. Dynamic Engineering Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Mar 2021
- **Citation:** TCN-2021-NCLT-02615
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jericho-chemicals-llp-cp-ib-no-40-gb-2019-8a52d4a6

## Summary

### Background

Dynamic Engineering Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jericho Chemicals LLP, claiming an unpaid operational debt of Rs. 42,26,263.00. The petitioner contended that the corporate debtor defaulted on payments despite supplying materials and services. The corporate debtor admitted the mistake and promised to honor its commitment, but failed to do so. The operational creditor issued a demand notice, but the corporate debtor neither made the payment nor responded to the notice. The corporate debtor argued that there were deficiencies in the services provided, leading to losses, and raised a debit note to offset the outstanding amount. The petitioner argued

…

## Facts

Dynamic Engineering Ltd. (Operational Creditor) filed a petition against Jericho Chemicals LLP (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP due to an unpaid operational debt of Rs.42,26,263.00, including interest. The Operational Creditor supplied materials and services to the Corporate Debtor, who defaulted on payments despite agreeing to the terms of the contract. The Corporate Debtor placed two purchase orders with the applicant for supply of materials and services. The Operational Creditor executed all the above mentioned orders and accordingly supplied the required materials and provided its services for installation, testing and commissioning etc. The Corporate Debtor admitted the mistake and promised to

…

## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

…

**Reasoning:** The Adjudicating Authority considered the evidence presented by the Operational Creditor,

…

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

…

**Application:** The Adjudicating Authority found that the Operational Creditor had provided

…

## Parties

- **Judges:** H.V. Subb…; Prasanta Kumar…
- **Appellants:** Dynamic Engineerin…
- **Respondents:** Jericho Chemicals…
- **Advocates:** Sibanu…; Kriti B…; +1 more

## Timeline

- **2012-05-18 — Incorporation of…**: Jericho Chemicals LLP…
- **2017-01-17 — Purchase…**: Purchase Order No 80AAMK17012017 dated 17/1/2017 issued by the Respondent for…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/jericho-chemicals-llp-cp-ib-no-40-gb-2019-8a52d4a6