# In the matter of Pearson Drums & Barrels (P) Ltd. CP (IB) No. 513-KB-2017

> NCLT judgment dated 2018-01-09. Citation: TCN-2018-NCLT-01948. Maldar Barrels (P) Ltd., the operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 9 Jan 2018
- **Citation:** TCN-2018-NCLT-01948
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pearson-drums-barrels-p-ltd-cp-ib-no-513-kb-2017-056f991f

## Summary

### Background

Maldar Barrels (P) Ltd., the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Pearson Drums & Barrels (P) Ltd., the corporate debtor, for initiation of the corporate insolvency resolution process. The operational creditor claimed that the corporate debtor defaulted in payment of Rs. 8,82,11,723, including interest, for goods supplied. The corporate debtor contested the claim, alleging disputes, forged invoices, and that the operational creditor was a willful defaulter.

## Facts

Maldar Barrels (P) Ltd. (operational creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 against Pearson Drums & Barrels (P) Ltd. (corporate debtor) for initiating corporate insolvency resolution process due to a default in payment. The operational creditor claimed an outstanding amount of Rs. 8,82,11,723, inclusive of interest at 21% p.a., for goods supplied to the corporate debtor. The corporate debtor made part payments totaling Rs. 20,04,79,817, with the last payment of Rs. 27,50,000 received between April and July 2017, leaving a principal sum of Rs. 4,75,28,807 outstanding. The operational creditor issued demand notices, including one dated 09/08/2017, but the corporate debtor failed to pay. The corporate debtor

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## Issues and analysis

### Issue 1: Whether the corporate debtor succeeded in proving …

**Ratio:** The burden of proof lies on the corporate debtor to demonstrate that it has discharged

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**Reasoning:** The NCLT found that the corporate debtor failed to provide sufficient evidence to prove

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**Interpretation:** The principle emphasizes the importance of providing concrete evidence to

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**Application:** In this case, the corporate debtor's failure to provide supporting evidence led

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Appellants:** Maldar Barrels…
- **Respondents:** PEARSON DRUMS AND…
- **Advocates:** Ratanko Ba…; Mayur Khanderparka…; +3 more

## Timeline

- **2017-08-09 — Demand N…**: Operational creditor delivered demand notice of unpaid operational debt/copy of invoices…
- **2017-08-11 — Service of Dema…**: Demand notice was duly…

## 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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