# In the matter of KN Trading Pvt. Ltd. Company Petition No. IB-2901-ND-2019

> NCLT judgment dated 2021-04-29. Citation: TCN-2021-NCLT-02256. Metenere Limited, claiming to be an operational creditor, filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 29 Apr 2021
- **Citation:** TCN-2021-NCLT-02256
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kn-trading-pvt-ltd-company-petition-no-ib-2901-nd-2019-d305e673

## Summary

### Background

Metenere Limited, claiming to be an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against K N Trading PVT. LTD., the corporate debtor, for its inability to liquidate a claim of Rs. 88,90,87,767.03 inclusive of interest. The operational debt allegedly arose from the supply of lead and unwrought aluminum by Metenere Limited to K N Trading PVT. LTD. between 21.02.2017 and 31.03.2017. A demand notice was issued under Section 8 of the Code on 27.09.2019.

## Facts

Metenere Limited (the applicant), claiming to be an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against K N Trading PVT. LTD. (the corporate debtor). The alleged operational debt amounted to Rs. 88,90,87,767.03 inclusive of interest, arising from the supply of lead and unwrought aluminum between 21.02.2017 and 31.03.2017. A demand notice was issued on 27.09.2019. K N Trading PVT. LTD. disputed the debt, claiming no privity of contract and alleging false invoices. The applicant was given multiple opportunities to file a rejoinder to prove its claim and establish a valid contract, but failed to do so and was also absent at the hearing. The date of

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## Issues and analysis

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

**Ratio:** The Adjudicating Authority must determine whether an operational debt exists, whether it

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**Reasoning:** The Adjudicating Authority observed that the applicant failed to provide sufficient

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**Interpretation:** The interpretation of Section 9 requires the operational creditor to

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**Application:** In this case, the applicant failed to meet the burden of proof by not providing

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## Parties

- **Judges:** DEEPTI M…; SUMIΙΤΑ PURKAYASTH…
- **Appellants:** Metenere L…
- **Respondents:** Κ Ν TRADINGPVT.…

## Timeline

- **2017-02-21 — Supply of…**: The Applicant supplied goods to the Corporate…
- **2017-03-31 — Date of D…**: The date of default is 31.03.2017, 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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