# In the matter of Parikh Packaging Private Limited C.P. No. (IB) 656-9-NCLT-AHM-2019

> NCLT judgment dated 2020-03-20. Citation: TCN-2020-NCLT-01425. The case pertains to an application filed by M/s. Sumilon Polyester Limited, an operational…

- **Court:** NCLT
- **Order date:** 20 Mar 2020
- **Citation:** TCN-2020-NCLT-01425
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/parikh-packaging-private-limited-cp-no-ib-656-9-nclt-ahm-2019-6d427643

## Summary

### Background

The case pertains to an application filed by M/s. Sumilon Polyester Limited, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Parikh Packaging Private Limited, the corporate debtor, for non-payment of operational debt. The operational creditor claimed that a sum of Rs. 19,07,560/- was due as of 04.09.2018 for the supply of CC Pet and CC Met Pet material. The corporate debtor raised objections, stating that there was a pre-existing dispute regarding the quality of the material supplied, leading to rejection by their clients and debit notes raised to the tune of Rs. 11.50 lacs.

## Facts

M/s. Sumilon Polyester Limited (operational creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s. Parikh Packaging Private Limited (corporate debtor) for non-payment of operational debt amounting to Rs. 19,07,560/- as of 04.09.2018. The debt was for the supply of CC Pet and CC Met Pet material. The corporate debtor contended that there was a pre-existing dispute regarding the quality of the material supplied, leading to rejection by their clients and debit notes raised to the tune of Rs. 11.50 lacs. The corporate debtor communicated the poor quality to the operational creditor via email dated 28.12.2017. The operational creditor acknowledged the complaint and agreed to take back the unused material of 9116.4 kgs. The

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## Issues and analysis

### Issue 1: Whether there exists a pre-existing dispute between the operational creditor and the corporate …

**Ratio:** The existence of a pre-existing dispute between the operational creditor and the

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**Reasoning:** The Adjudicating Authority considered the material placed on record by the respondent,

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**Interpretation:** The interpretation of Section 9 of the Insolvency and Bankruptcy Code, 2016,

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**Application:** In this case, the court found that the corporate debtor had raised concerns

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Sumilon Polyester…
- **Respondents:** Parikh Packaging…
- **Advocates:** Monaal Da…; Monal Dav…; +1 more

## Timeline

- **1999-10-22 — Incorporation of…**: M/s. Parikh Packaging Private Limited was…
- **2017-04-01 — Ledger Account…**: Operational creditor maintained…

## 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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