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

> NCLT judgment dated 2019-05-27. Citation: TCN-2019-NCLT-03191. 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-03191
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/microsys-polymers-pvt-ltd-ib-329-nd-2019-a1a6f04a

## 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 invoices were raised between 21.03.2017 and 24.03.2017, and payment was not made within 30 days, attracting interest at 21% per annum. The respondent, Microsys Polymers, initially did not dispute the material and provided 'C' Forms under Central Sales Tax provisions. However, upon receiving a demand notice under Section 8 of the Code, the respondent

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## Facts

M/s Arihant Evergreen Agro Plast and Textiles Pvt. Ltd. (Applicant) supplied raw materials (HDPF granules) to M/s Microsys Polymers Pvt. Ltd. (Respondent). Three invoices, totaling Rs. 21,82,955/-, were raised between 2017-03-21 and 2017-03-24, with a payment term of 30 days and interest at 21% per annum for late payments. The Respondent initially provided 'C' Forms under Central Sales Tax provisions, indicating acceptance of the material. The Applicant sent a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, for Rs. 26,39,996/-, which was received by the Respondent. The Respondent replied to the demand notice, disputing the quality of the material and claiming no direct dealing with the Applicant, stating the purchase was through a mediator.

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## Issues and analysis

### Issue 1: Whether the Applicant has established the existence of debt and default on the part of the …

**Ratio:** The legal principle is that if the applicant demonstrates a clear debt and default, the

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**Reasoning:** The Tribunal reviewed the application and supporting documents and found that the

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**Interpretation:** The existence of a debt and default is a prerequisite for initiating CIRP under

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**Application:** In this case, the applicant provided invoices, demand notices, and other

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## Parties

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

## Timeline

- **2017-03-21 — Invoice…**: Invoices raised by the Applicant to the…
- **2017-11-10 — 'C' Form Sub…**: Respondent gave 'C' Form under provisions…

## 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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