# In the matter of Kaygee Shotech Private Limited CP (IB) No.1306-KB-2018

> NCLT judgment dated 2021-01-19. Citation: TCN-2021-NCLT-03266. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 19 Jan 2021
- **Citation:** TCN-2021-NCLT-03266
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kaygee-shotech-private-limited-cp-ib-no1306-kb-2018-cb5a7874

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by K.B.Polychem (India) Ltd. (Operational Creditor) against Kaygee Shotech Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The application was initially dismissed by the NCLT Kolkata Bench. The Operational Creditor then appealed to the NCLAT, which allowed the appeal and set aside the NCLT's order. The NCLAT directed the NCLT to pass an order of admission.

## Facts

K.B.Polychem (India) Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Kaygee Shotech Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The NCLT initially dismissed the application. K.B.Polychem (India) Ltd. appealed to the NCLAT. The NCLAT allowed the appeal, setting aside the NCLT's order. The NCLAT observed that Kaygee Shotech Private Limited had not specifically denied the service of demand notice and had failed to demonstrate the existence of a dispute prior to the issuance of the demand notice. The NCLAT also determined that the application was filed within the statutory period of limitation. The application for initiation of Corporate Resolution Process was filed on 15th September,

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

**Ratio:** The application should be admitted if the operational debt exists, there is a default,

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**Reasoning:** The NCLAT directed the Adjudicating Authority to pass an order of admission. The

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

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**Application:** Based on the NCLAT's directions and the review of the documents, the NCLT

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** K.B Polychem…
- **Respondents:** Kaygee Shotech…

## Timeline

- **2018-09-15 — Application…**: Application for initiation of…
- **2019-08-27 — NCLT Ord…**: Tribunal passed an order of dismissal of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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