# In the matter of Microsys Polymers Pvt. Ltd. IB-329-(ND)-2019

> NCLT judgment dated 2019-05-27. Citation: TCN-2019-NCLT-03194. M/s Arihant Evergreen Agro Plast and Textiles Private Limited filed an application under…

- **Court:** NCLT
- **Order date:** 27 May 2019
- **Citation:** TCN-2019-NCLT-03194
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/microsys-polymers-pvt-ltd-ib-329-nd-2019-02299518

## Summary

### Background

M/s Arihant Evergreen Agro Plast and Textiles Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Microsys Polymers Private Limited due to an alleged default in settling an amount of Rs. 30,33,391/-, which included interest on the supply of raw materials (HDPF granules). The applicant claimed that three invoices aggregating to Rs. 21,82,955/- were raised between 21.03.2017 and 24.03.2017, and payment was not made within 30 days, attracting an interest of 21% per annum. The respondent, Microsys Polymers, initially did not dispute the material and provided 'C' Forms under the Central Sales Tax provisions on 10.11.2017. Subsequently, the applicant

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## Facts

Arihant Evergreen Agro Plast and Textiles Pvt. Ltd. (Applicant) supplied raw materials (HDPF granules) to Microsys Polymers Pvt. Ltd. (Respondent) between 21.03.2017 and 24.03.2017, raising three invoices totaling Rs. 21,82,955/-. Payment was not made within 30 days, leading to an interest charge of 21% per annum. The total amount due, including interest, was Rs. 30,33,391/-. The Respondent initially provided 'C' Forms under Central Sales Tax on 10.11.2017, indicating acceptance of the transaction. The Applicant sent a demand notice on 25.04.2018, but the Respondent replied, disputing the quality of the material and claiming the purchase was through a mediator. The Respondent, however, failed to provide any supporting documentation. The Applicant then filed an

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## Issues and analysis

### Issue 1: Whether the Applicant, Arihant Evergreen Agro Plast and Textiles Pvt. Ltd., has established the …

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

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**Reasoning:** The Tribunal found that the Applicant had supplied raw materials to the Respondent,

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**Interpretation:** The legal principle is that an operational creditor can initiate CIRP if a debt

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**Application:** In this case, the Applicant provided invoices and proof of delivery,

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## Parties

- **Judges:** Ina Mal…; V.K. SUB…
- **Appellants:** M/s. Arihant…
- **Respondents:** MICROSYS POLYMERS…
- **Advocates:** Rajendra K.…

## Timeline

- **2017-03-21 — Invoice…**: Material supplied by the Applicant to the…
- **2017-03-24 — Invoice…**: Material supplied by the Applicant to 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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