# In the matter of NPAT Furniture Private Limited C.P. (I.B) No. 171-9-NCLT-AHM-2019

> NCLT judgment dated 2019-12-18. Citation: TCN-2019-NCLT-00098. M/s. M. S. Enterprise, an operational creditor, filed an IB petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 18 Dec 2019
- **Citation:** TCN-2019-NCLT-00098
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/npat-furniture-private-limited-cp-ib-no-171-9-nclt-ahm-2019-6b64e90a

## Summary

### Background

M/s. M. S. Enterprise, an operational creditor, filed an IB petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s. NPAT Furniture Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor had defaulted on payments for goods supplied between October 2016 and November 2017. The operational creditor issued a demand notice under Section 8 of the IBC, but the corporate debtor did not respond. The operational creditor sought admission of the insolvency application, appointment of an interim resolution professional, and declaration of a moratorium.

## Facts

M/s. M. S. Enterprise, an operational creditor, filed an IB petition against M/s. NPAT Furniture Pvt. Ltd., a corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. M/s. M. S. Enterprise supplied wood coating solutions to M/s. NPAT Furniture Pvt. Ltd. between October 2016 and November 2017. The total amount outstanding for the goods supplied was Rs. 9,34,694/-. M/s. M. S. Enterprise also claimed Rs. 3,02,352/- as interest for delayed payments, bringing the total claim to Rs. 12,38,046/-. The corporate debtor made ad-hoc payments, with the last payment of Rs. 50,000/- made on 02.05.2018. M/s. M. S. Enterprise issued a demand notice under Section 8 of the IBC for Rs. 12,18,801/-, but the corporate debtor did not respond. The corporate debtor did

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## Issues and analysis

### Issue 1: Whether the present IB petition filed under Section 9 of the code is complete for the purpose of …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for an

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**Reasoning:** The Tribunal considered the facts presented, including the outstanding amount, the demand

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if the operational creditor

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**Application:** In this case, the Tribunal found that the operational creditor had demonstrated

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** M/s. M.S.…
- **Respondents:** M/s. NPAT…
- **Advocates:** Jaimin…; Priyank S…

## Timeline

- **2016-10-01 — Start of Suppl…**: M/s. M. S. Enterprise began supplying wood coating solutions to M/s. NPAT Furniture Pvt.…
- **2017-11-01 — End of Supply…**: M/s. M. S. Enterprise concluded supplying wood coating solutions to M/s. NPAT Furniture…

## 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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