# In the matter of Katariya Pet Private Limited CP (IB) 2144-MB-C-IV-2019

> NCLT judgment dated 2019-12-06. Citation: TCN-2019-NCLT-00296. The case involves a petition filed by M/s Rasayano, an operational creditor represented by its…

- **Court:** NCLT
- **Order date:** 6 Dec 2019
- **Citation:** TCN-2019-NCLT-00296
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/katariya-pet-private-limited-cp-ib-2144-mb-c-iv-2019-eaf0895e

## Summary

### Background

The case involves a petition filed by M/s Rasayano, an operational creditor represented by its proprietor, Mr. Purushottam G Khetan, under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC), to initiate the Corporate Insolvency Resolution Process (CIRP) against Katariya Pet Private Limited, the corporate debtor. The operational creditor claims that the corporate debtor defaulted on payments for goods sold and delivered under two invoices. The corporate debtor disputes the claim, alleging that the goods supplied were faulty and of low quality, and invokes an arbitration clause.

## Facts

M/s Rasayano, the operational creditor, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) against Katariya Pet Private Limited, the corporate debtor, for defaulting on payments for goods sold and delivered. The operational creditor claimed a total debt of Rs. 49,67,309.00, including principal and interest. The corporate debtor argued that the goods supplied were faulty and of low quality, leading to losses, and invoked an arbitration clause in the sales contract. The corporate debtor also claimed that a pre-existing dispute existed, as the issue of faulty goods was raised with a mediator before the demand notice was issued. The operational creditor served a demand notice on 22.04.2019, and the corporate debtor replied on 14.06.2019,

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## Issues and analysis

### Issue 1: Whether the application made by the Operational Creditor is complete in all respects as required by …

**Ratio:** The application made by the Operational Creditor is complete in all respects as required

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**Reasoning:** The Corporate Debtor is in default of a debt due and payable, and the default is in

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**Interpretation:** The application made by the Operational Creditor is complete in all respects as

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**Application:** The application made by the Operational Creditor is complete in all respects as

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** M/s Ras…
- **Respondents:** Katariya Pet…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency & Bankruptcy…
- **2018-03-07 — Sales Contra…**: Date of the Sales Contract between the…

## 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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