# In the matter of Naachair Paper Boards Private Limited CP-612-(IB)-CB-2017

> NCLT judgment dated 2017-12-20. Citation: TCN-2017-NCLT-00022. The case involves a company petition filed by Mithesa Traders, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 20 Dec 2017
- **Citation:** TCN-2017-NCLT-00022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/naachair-paper-boards-private-limited-cp-612-ib-cb-2017-09fc634a

## Summary

### Background

The case involves a company petition filed by Mithesa Traders, an operational creditor, against Naachair Paper Boards Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed that the corporate debtor defaulted on payments for the supply of waste paper and allied products. The invoices were raised from 29.12.2014 to 11.03.2016. Initially, both parties entered into a compromise and filed a joint memo dated 04.09.2017, with the respondent tendering post-dated cheques. However, the operational creditor filed an application to revive the petition as the respondent failed to make payments, and the cheques were dishonored.

## Facts

Mithesa Traders (Operational Creditor) filed a company petition against Naachair Paper Boards Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor approached the Operational Creditor for the supply of waste paper and allied products. The Operational Creditor supplied the products, and invoices were raised from 29.12.2014 to 11.03.2016. The Corporate Debtor failed to make payments towards the debt. A demand notice was sent on 27.03.2017. Initially, both parties entered into a compromise, and the Corporate Debtor issued post-dated cheques. However, the Corporate Debtor failed to honor the cheques, leading the Operational Creditor to revive the petition. The Respondent failed to appear on multiple occasions

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on …

**Ratio:** The ratio is that if a corporate debtor fails to make payments against a valid

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**Reasoning:** The adjudicating authority found that the petitioner had established that the corporate

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**Interpretation:** The interpretation is that the failure to pay a legitimate debt, as evidenced

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**Application:** The ratio and reasoning apply to the specific facts of the case because the

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** M/s. Mithesa…
- **Respondents:** M/s. Naachair…

## Timeline

- **2014-12-29 — Invoice Perio…**: Invoices raised from this date for the…
- **2016-03-11 — Invoice Per…**: Invoices raised until this date for the…

## 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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