# In the matter of NSD Global Trader Pvt. Ltd. CP NO. 1204-IBC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-02-23. Citation: TCN-2018-NCLT-01780. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 23 Feb 2018
- **Citation:** TCN-2018-NCLT-01780
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nsd-global-trader-pvt-ltd-cp-no-1204-ibc-nclt-mb-mah-2017-a1938078

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, filed by M/s. ONS Impex Traders Pvt. Ltd. (Operational Creditor) against M/s. NSD Global Trade Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed non-payment for PVB films supplied to the Corporate Debtor. The Operational Creditor issued a demand notice, but the Corporate Debtor failed to raise any dispute or objection.

## Facts

M/s. ONS Impex Traders Pvt. Ltd. (Operational Creditor) filed a petition against M/s. NSD Global Trade Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for non-payment of operational debt. The Operational Creditor supplied PVB Films to the Corporate Debtor, but the Corporate Debtor failed to pay the due amount from December 14, 2015. The total principal amount in default was Rs. 14,76,128/-. The Operational Creditor also claimed interest on the unpaid amount at 24% p.a., amounting to Rs. 3,54,271/-. The Operational Creditor issued 7 sales invoices totaling Rs. 18,44,025/-, but only received a payment of Rs. 50,000/-. A demand notice was issued on June 10, 2017, but the packet was returned with the remark "LEFT". The

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## Issues and analysis

### Issue 1: Whether the nature of the debt is an 'Operational Debt' as defined under section 5(21) of the …

**Ratio:** Section 5(21) of the Insolvency and Bankruptcy Code defines 'Operational Debt' as a claim

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**Reasoning:** The court considered the facts presented by the Operational Creditor, including the

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**Interpretation:** The court interpreted Section 5(21) to include the supply of goods as an

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**Application:** The court applied the definition of 'Operational Debt' to the facts of the case

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## Parties

- **Judges:** M.K. Sh…; Bhaskara Pantula…
- **Appellants:** M/s. ONS Impex…
- **Respondents:** M/s. NSD Global…

## Timeline

- **2017-07-13 — Filing of For…**: The Petitioner furnished Form No. 5 under Rule 6 of the Insolvency and Bankruptcy…
- **2017-06-10 — Demand N…**: The Petitioner issued a Demand Notice dated 10th June, 2017 under section 8 on prescribed…

## 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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