# In the matter of Nassco Trading India Private Limited IBA-22 & 23-KOB-2020

> NCLT judgment dated 2021-03-23. Citation: TCN-2021-NCLT-02601. The case involves two applications, IBA/22/KOB/2020 and IBA/23/KOB/2020, filed by M/s. Ambani…

- **Court:** NCLT
- **Order date:** 23 Mar 2021
- **Citation:** TCN-2021-NCLT-02601
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nassco-trading-india-private-limited-iba-22-23-kob-2020-0d644083

## Summary

### Background

The case involves two applications, IBA/22/KOB/2020 and IBA/23/KOB/2020, filed by M/s. Ambani Vitrified Pvt Limited and M/s. Airson Ceramic Industries, respectively, against the Corporate Debtor, M/s. Nassco Trading India Private Limited, under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The Operational Creditors claimed unpaid dues for the supply of vitrified and ceramic tiles. The Corporate Debtor failed to clear the outstanding amounts despite receiving invoices and demand notices.

## Facts

M/s. Ambani Vitrified Private Limited and M/s. Airson Ceramic Industries, the Operational Creditors, filed applications under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Nassco Trading India Private Limited, the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to unpaid dues. M/s. Ambani Vitrified Private Limited supplied 12,382 boxes of nano vitrified tiles to the Corporate Debtor between 26.05.2016 and 15.08.2016, amounting to ₹44,02,946/-, out of which ₹56,666 was paid, leaving a balance of ₹77,34,614 (including interest of ₹33,88,334) due as of 30.11.2019. M/s. Airson Ceramic Industries supplied 69,792 boxes of ceramic tiles to the Corporate Debtor between 01.04.2016 and 31.04.2017, amounting to

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## Issues and analysis

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

**Ratio:** Section 9(5) of the IBC states that the Adjudicating Authority shall, within fourteen

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**Reasoning:** The Tribunal found that the applications were complete and the Applicants were entitled

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The Tribunal applied Section 9(5) of the IBC to the facts of the case and found

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## Parties

- **Judges:** Ashok Kumar…
- **Appellants:** M/s Ambani…
- **Respondents:** M/s Nassco…

## Timeline

- **2016-05-26 — Supply of Vitrified…**: M/s. Ambani Vitrified Private Limited started supplying vitrified tiles to M/s. Nassco…
- **2016-08-15 — End of Vitrified Tiles…**: M/s. Ambani Vitrified Private Limited completed the supply of vitrified tiles to M/s.…

## 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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