# In the matter of JK Coil Coatings Private Limited CP (IB) No.3918/MB IV/2019

> NCLT judgment dated 2020-09-18. Citation: TCN-2020-NCLT-00582. The case involves a petition filed by Pooransingh Vijaysingh Rathod, the sole proprietor of…

- **Court:** NCLT
- **Order date:** 18 Sept 2020
- **Citation:** TCN-2020-NCLT-00582
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jk-coil-coatings-private-limited-cp-ib-no3918mb-iv2019-03832877

## Summary

### Background

The case involves a petition filed by Pooransingh Vijaysingh Rathod, the sole proprietor of Meghna Colour Chem (Operational Creditor), under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), to initiate the Corporate Insolvency Resolution Process (CIRP) against JK Coil Coatings Private Limited (Corporate Debtor). The petition was filed due to the Corporate Debtor's alleged failure to pay a sum of ₹33,99,714.00, claimed as principal as of 03.10.2018, which is stated to be the date of default. The Corporate Debtor is a private company limited by shares, incorporated on 07.08.2006.

## Facts

Pooransingh Vijaysingh Rathod, the sole proprietor of Meghna Colour Chem, is the Operational Creditor. JK Coil Coatings Private Limited is the Corporate Debtor. The Operational Creditor supplied chrome pigments to the Corporate Debtor for manufacturing paints under eleven invoices, totaling ₹35,75,400. The Corporate Debtor made an 'on account' payment of ₹5,00,000 on 03.08.2018, of which ₹3,24,314 was appropriated towards older dues. The balance unpaid debt amount of ₹2,13,714 of Invoice No.14, which was defaulted, is claimed in the present petition. After adjusting the above stated payment, the total debt outstanding is to the tune of ₹33,94,714. The Corporate Debtor issued a cheque for ₹33,35,400 on 25.02.2019, which bounced on 18.04.2019. The Operational Creditor

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a debt …

**Ratio:** The ratio is that if a corporate debtor fails to make payment of a debt when it has

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**Reasoning:** The court reasoned that the Operational Creditor had provided sufficient evidence,

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**Interpretation:** The interpretation is that a default occurs when a debt is due and payable but

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Pooransingh…
- **Respondents:** JK Coil Coatings…
- **Advocates:** Mr Ulhas…; Mr KC P…

## Timeline

- **2006-08-07 — Incorporation of…**: JK Coil Coatings Private Limited was…
- **2018-08-03 — Partial Payment by…**: The Corporate Debtor made an 'on account' payment of ₹5,00,000 to the Operational…

## 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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