# In the matter of Novelty Treasure Metals Private Limited Company Petition No. IB-1520-ND-2018

> NCLT judgment dated 2020-07-30. Citation: TCN-2020-NCLT-00933. Metenere Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 Jul 2020
- **Citation:** TCN-2020-NCLT-00933
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/novelty-treasure-metals-private-limited-company-petition-no-ib-1520-nd-2018-fe989885

## Summary

### Background

Metenere Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Novelty Treasure Metals Private Limited. Metenere Limited, the operational creditor, claimed that Novelty Treasure Metals Private Limited, the corporate debtor, had defaulted on payments for materials supplied. The applicant issued a demand notice under Section 8 of the IBC, but the corporate debtor neither raised a notice of dispute nor made the payment. The corporate debtor claimed a pre-existing dispute regarding the quality of materials and the amount of debt.

## Facts

Metenere Limited (the 'Applicant') filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('IBC, 2016') read with Rule 6 of the Insolvency and Bankruptcy Code (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process against Novelty Treasure Metals Private Limited (the 'Corporate Debtor'). The Applicant, an operational creditor, claimed that the Corporate Debtor defaulted on payments for materials supplied between 03.10.2017 and 30.12.2017, with invoices totaling Rs 198,050,642.98. A demand notice was issued on 09.08.2018 under Section 8 of the IBC, demanding Rs 172,029,262 plus 18% interest p.a., totaling Rs 198,050,643. The Corporate Debtor did not reply to the demand notice or make

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is …

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

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**Reasoning:** The court found that the application was complete and met the requirements of Section 9

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP

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**Application:** The court applied Section 9 to the facts and found that the application was

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## Parties

- **Judges:** DEEPTI M…; Sh. Hemant Kumar…
- **Appellants:** Metenere L…
- **Respondents:** Novelty Treasure…
- **Advocates:** AMIT M…; A.K G…

## Timeline

- **2017-10-03 — Supply of Ma…**: Applicant supplied various…
- **2017-12-30 — End of Supply…**: The period during which the applicant supplied…

## 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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