# In the matter of Leedskem (India) Limited C.P. No. 4143-I&BP-2018

> NCLT judgment dated 2019-03-06. Citation: TCN-2019-NCLT-04565. Sanjay Chemicals (India) Pvt. Ltd. filed a Company Petition under Sections 8 & 9 of the…

- **Court:** NCLT
- **Order date:** 6 Mar 2019
- **Citation:** TCN-2019-NCLT-04565
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/leedskem-india-limited-cp-no-4143-ibp-2018-94515978

## Summary

### Background

Sanjay Chemicals (India) Pvt. Ltd. filed a Company Petition under Sections 8 & 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Leedskem (India) Limited. The petitioner claimed that Leedskem (India) Limited, the Corporate Debtor, defaulted on payments amounting to Rs. 19,72,445, which included interest at 21% per annum on delayed payments. The default occurred on 17.04.2016.

## Facts

Sanjay Chemicals (India) Pvt. Ltd. (the Petitioner) filed a petition against Leedskem (India) Limited (the Corporate Debtor) under Sections 8 & 9 of the IBC, 2016. The Petitioner claimed that the Corporate Debtor defaulted on a payment of Rs. 19,72,445, including interest at 21% p.a., with the default occurring on 17.04.2016. The Petitioner issued a demand notice on 25.07.2018, seeking Rs. 12,91,727 as principal and Rs. 6,80,718 as interest. The Corporate Debtor's counsel admitted the debt and default. The Petitioner is engaged in the business of making various types of chemicals, while the Corporate Debtor is in the field of manufacturing chemicals such as drug intermediates, active pharma ingredients, and fine chemicals.

## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor (Sanjay Chemicals) under Sections 8 & …

**Ratio:** The legal principle applied is that if the Operational Creditor demonstrates a debt and

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**Reasoning:** The court reasoned that the Corporate Debtor's counsel admitted the debt and default. The

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**Interpretation:** Sections 8 and 9 of the IBC provide the framework for an operational creditor

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**Application:** The court applied the ratio and reasoning to the facts of the case, noting that

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Sanjay Chemicals…; Sanjay Chemicals…
- **Respondents:** Leedskem (India)…

## Timeline

- **2016-04-17 — Default…**: Corporate Debtor committed…
- **2018-07-25 — Demand Notice…**: Petitioner issued…

## 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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