# In the matter of Nakshatra Distilleries & Brewaries Limited CP (IB) 1797-MB-IV-2019

> NCLT judgment dated 2019-10-18. Citation: TCN-2019-NCLT-00916. Krupa Polymers (India) Private Limited, the Operational Creditor, filed a Company Petition…

- **Court:** NCLT
- **Order date:** 18 Oct 2019
- **Citation:** TCN-2019-NCLT-00916
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nakshatra-distilleries-brewaries-limited-cp-ib-1797-mb-iv-2019-df0d5b8a

## Summary

### Background

Krupa Polymers (India) Private Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Nakshatra Distilleries & Breweries Limited, the Corporate Debtor. The Corporate Debtor is a public company incorporated on 06.01.2009. The Operational Creditor instituted fresh proceedings to recover the balance amount after the Corporate Debtor defaulted on payments. The Corporate Debtor had earlier admitted the debt in previous proceedings (CP(IB) No.1207/2017) but violated the Consent Terms.

## Facts

Krupa Polymers (India) Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) against Nakshatra Distilleries & Breweries Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is a public company incorporated on 06.01.2009. The Corporate Debtor placed orders for the supply of pet bottles with the Operational Creditor on a regular basis. The Operational Creditor supplied the goods and raised invoices. The Corporate Debtor failed to make payment of Rs.11,00,029.75 as principal and Rs.5,46,339.00 as interest as on 04.02.2018, which is the date of default. The invoices provided for interest on delayed payments at rates of 24% and 15% per annum. The

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a debt …

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

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**Reasoning:** The Corporate Debtor failed to make payment of the outstanding amount as per the invoices

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**Interpretation:** The term 'default' under the IBC refers to the non-payment of debt when it has

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**Application:** The Corporate Debtor's failure to pay the outstanding amount, coupled with its

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Krupa Polymers…
- **Respondents:** Nakshatra…

## Timeline

- **2009-01-06 — Corporate Debtor…**: Nakshatra Distilleries & Breweries…
- **2018-02-04 — Date of D…**: The Corporate Debtor defaulted on…

## 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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