# In the matter of Nicomet Industries Limited CP 619-IBC-NCLT-MAH-2018

> NCLT judgment dated 2018-12-14. Citation: TCN-2018-NCLT-00075. The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 14 Dec 2018
- **Citation:** TCN-2018-NCLT-00075
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nicomet-industries-limited-cp-619-ibc-nclt-mah-2018-5f80ca79

## Summary

### Background

The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, by Nico Extrusions Limited (Operational Creditor) against Nicomet Industries Limited (Corporate Debtor). The Operational Creditor claims that the Corporate Debtor failed to pay Rs. 31,70,404/-, which includes a principal amount of Rs. 20,58,704/- and interest of Rs. 11,11,700/-. The Operational Creditor had sold 8 licenses to the Corporate Debtor for Rs. 51,28,704/-. A Section 8 notice was sent on 9.3.2017 for an unpaid amount of Rs. 20,58,704/- plus interest. The Corporate Debtor acknowledged owing Rs. 1,00,000/- and sent a cheque for that amount, stating that encashment would be considered closure of the account.

## Facts

Nico Extrusions Limited (Operational Creditor) filed a petition against Nicomet Industries Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, claiming a default of Rs. 31,70,404/-. This amount includes a principal of Rs. 20,58,704/- and interest of Rs. 11,11,700/-. The debt arose from the sale of 8 licenses by the Operational Creditor to the Corporate Debtor for Rs. 51,28,704/-. A Section 8 notice was issued on 9.3.2017 for the unpaid amount of Rs. 20,58,704/- plus interest. The Corporate Debtor replied on 20.3.2017, acknowledging owing Rs. 1,00,000/- and sending a cheque for that amount, stating that encashment would be considered closure of the account. The Operational Creditor refused the cheque and demanded an explanation for

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor fulfills the requirements of Section 9 of …

**Ratio:** Section 9 of the IBC outlines the requirements for an operational creditor to initiate

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**Reasoning:** The court found that the Operational Creditor had filed a complete application and that

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**Interpretation:** The interpretation of Section 9 requires the adjudicating authority to assess

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**Application:** In this case, the court applied the ratio by determining that the disputes

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Nico Extrusions…
- **Respondents:** Nicomet Industries…

## Timeline

- **2017-03-09 — Section 8…**: Operational Creditor sends Section 8 demand notice to Corporate Debtor for unpaid amount…
- **2017-03-20 — Corporate Debto…**: Corporate Debtor replies to the Section 8 notice, acknowledging owing Rs. 1,00,000/- and…

## 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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