# In the matter of Praspack Industries Private Limited C.P. No. (IB) 152-9-NCLT-AHM-2019

> NCLT judgment dated 2020-10-08. Citation: TCN-2020-NCLT-00426. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Oct 2020
- **Citation:** TCN-2020-NCLT-00426
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/praspack-industries-private-limited-cp-no-ib-152-9-nclt-ahm-2019-63b89d80

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by TCI Express Ltd, an operational creditor, against Praspack Industries Pvt Ltd, the corporate debtor, due to unpaid operational debt. TCI Express provided logistic services to Praspack Industries, and invoices were raised and accepted. Despite this, an amount of Rs. 5,69,185/- along with interest at 24% per annum remained unpaid. The operational creditor issued a demand notice, but no reply was received from the corporate debtor.

## Facts

TCI Express Ltd, an operational creditor engaged in logistics, filed an application against Praspack Industries Pvt Ltd, a private limited company involved in manufacturing fabrics, under Section 9 of the Insolvency and Bankruptcy Code, 2016. TCI Express provided transportation services to Praspack Industries, raising invoices that were accepted. An amount of Rs. 5,69,185/- plus 24% interest remained unpaid for services provided between 10.08.2018 and 09.06.2018. TCI Express issued a demand notice on 10.09.2018, but received no response. Praspack Industries raised objections, claiming no time-bound payment condition and unresolved issues regarding damaged goods. The NCLT observed that the application was complete, the debt existed, and no dispute was raised by the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is complete and …

**Ratio:** The Adjudicating Authority must be satisfied that the application is complete in all

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**Reasoning:** The court examined the documents produced by the operational creditor and found that they

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**Interpretation:** The completeness of the application and the existence of a debt and default are

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**Application:** In this case, the court found that the application was complete, and the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** TCI Expres…
- **Respondents:** Praspack Industrie…
- **Advocates:** Mandeep…; Mandeep Singh…

## Timeline

- **2018-08-10 — Start of Servi…**: Start date of the period during which logistic services were provided by TCI Express Ltd…
- **2018-09-10 — Demand Notice…**: TCI Express Ltd issued a demand notice to Praspack Industries Pvt Ltd for the outstanding…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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