# In the matter of Madhushree Industries Pvt. Ltd. C.P. (IB) No. 1699-KB-2019

> NCLT judgment dated 2021-08-13. Citation: TCN-2021-NCLT-01342. The case involves an application filed by The Mining Industrial Corporation (Operational…

- **Court:** NCLT
- **Order date:** 13 Aug 2021
- **Citation:** TCN-2021-NCLT-01342
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/madhushree-industries-pvt-ltd-cp-ib-no-1699-kb-2019-5f9f0648

## Summary

### Background

The case involves an application filed by The Mining Industrial Corporation (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Madhushree Industries Pvt. Ltd. (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor failed to pay an outstanding debt of Rs. 21,89,769.54 for the supply of coal. The Corporate Debtor acknowledged the debt but cited financial difficulties as the reason for non-payment.

## Facts

The Mining Industrial Corporation (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Madhushree Industries Pvt. Ltd. (Corporate Debtor) for unpaid dues related to the supply of coal. The Operational Creditor claimed an outstanding debt of Rs. 21,89,769.54, including interest calculated up to 31.07.2019. The Corporate Debtor acknowledged the debt but cited financial difficulties and requested more time to repay. A demand notice was sent by the Operational Creditor on 09.08.2019 and received by the Corporate Debtor on 14.08.2019. The Corporate Debtor did not raise any dispute prior to the demand notice. The Operational Creditor submitted invoices, ledger accounts, and a bank statement as evidence of the debt

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The NCLT found that the Operational Creditor had complied with the requirements of

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** In this case, the Operational Creditor's application was found to be complete

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** The Mining…
- **Respondents:** Madhushree…

## Timeline

- **2019-08-09 — Demand N…**: The Operational Creditor sent a…
- **2019-08-14 — Delivery of Demand…**: The demand notice was…

## 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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