# In the matter of KPR Realty India Private Limited C.P. (IB) No.88-BB-2020

> NCLT judgment dated 2020-05-21. Citation: TCN-2020-NCLT-01341. Exxaro Tiles Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 May 2020
- **Citation:** TCN-2020-NCLT-01341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kpr-realty-india-private-limited-cp-ib-no88-bb-2020-3dd9b755

## Summary

### Background

Exxaro Tiles Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against KPR Realty India Private Limited, alleging a default of Rs. 5,77,494/-. The operational debt arose from the supply of tiles by Exxaro Tiles to KPR Realty. The petitioner claimed that despite supplying tiles and raising invoices, the respondent failed to pay the outstanding dues. The petitioner also submitted that the respondent made part payments but a significant amount remained unpaid. The petitioner issued a demand notice under Section 8 of the IBC, but the respondent neither made payments nor showed any existing dispute regarding the quality of goods.

## Facts

Exxaro Tiles Private Limited (Operational Creditor) supplied 'TOPAZ SERIES' premium quality tiles to KPR Realty India Private Limited (Corporate Debtor) since 2013. An invoice No.3245 was raised on 28.12.2015 for Rs.5,77,494/-. The closing balance of the Respondent in the books of account of Petitioner stood at Rs.11,54,988/- on 28.12.2015. After a credit note of Rs.5,00,000/-, part payments of Rs.2,00,000/- on 07.08.2017 and Rs.1,00,000/- on 03.07.2018 were made. Three cheques dated 11.09.2019 for Rs.1,00,000/-, Rs.1,00,000/-, and Rs.1,54,988/- were dishonoured on 10.12.2019 due to 'Funds Insufficient'. A demand notice was issued on 25.10.2019 under section 8 of the I&B Code, 2016. The Corporate Debtor has a Paid Up Share capital of Rs 3.18 crore, has assets such

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 9 of the I&B Code, 2016, is an attempt to misuse the …

**Ratio:** The IBC is not intended to be a substitute for a recovery forum and cannot be used to

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**Reasoning:** The NCLT observed that the petitioner had been raising invoices and had a running account

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**Interpretation:** The court interpreted the intent of the legislature in introducing the Code of

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Exxaro Tiles…
- **Respondents:** KPR Realty India…

## Timeline

- **2015-12-28 — Invoice R…**: Invoice No.3245 was…
- **2017-08-07 — Part Pay…**: Part payment of…

## 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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