# In the matter of Paramount Impex Private Limited CP-IB-1484-ND-18

> NCLT judgment dated 2019-07-11. Citation: TCN-2019-NCLT-02567. The case involves a petition filed by Hukam Singh, proprietor of M/s H.H. Chemicals, under…

- **Court:** NCLT
- **Order date:** 11 Jul 2019
- **Citation:** TCN-2019-NCLT-02567
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/paramount-impex-private-limited-cp-ib-1484-nd-18-84bcd256

## Summary

### Background

The case involves a petition filed by Hukam Singh, proprietor of M/s H.H. Chemicals, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Paramount Impex Private Limited, the Corporate Debtor. The Operational Creditor (Hukam Singh) claims that the Corporate Debtor defaulted on payments for dyes and chemicals supplied. The Corporate Debtor disputes the claim, alleging that the petition is false, misleading, and unsustainable in law.

## Facts

Hukam Singh, operating as M/s H.H. Chemicals, is an operational creditor engaged in manufacturing and trading dyes and chemicals. M/s Paramount Impex Private Limited, the corporate debtor, placed purchase orders for dyes and chemicals. The operational creditor supplied goods based on these orders. The payment due date was 15 days from the invoice date. The invoices stated that interest at 24% per annum would be charged if payment was not made within 15 days. The operational creditor maintained a running account of transactions. As of May 22, 2018, the balance payable by the corporate debtor was Rs 17,00,612.00. A cheque of Rs 2,00,000 issued by the corporate debtor was returned unpaid due to insufficient funds. The operational creditor debited Rs 6,54,186.00 towards

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## Issues and analysis

### Issue 1: Whether the interest is the …

**Ratio:** Terms of payment mentioned on the invoices which clearly states that interest @24% will

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**Reasoning:** The court observed that interest was never part of the initial agreement, but the

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**Interpretation:** The interpretation hinges on whether the countersigned invoices constitute an

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**Application:** The court applied the ratio to the facts by noting that the invoices containing

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## Parties

- **Judges:** R. VARADH…; DeepaKr…
- **Appellants:** Hukam S…
- **Respondents:** M/s Paramount…

## Timeline

- **2016-08-12 — Alleged Date o…**: The petitioner mentioned the date of default to be as 12.08.2016 in point no. 2 of para…
- **2018-05-22 — Balance P…**: Balance amount payable by corporate debtor…

## 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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