# In the matter of R. K. Polytex Pvt. Ltd. C.P. No. IB-568-(ND)-2017

> NCLT judgment dated 2018-02-09. Citation: TCN-2018-NCLT-01853. J.J.Plastalloy Pvt. Ltd., an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 9 Feb 2018
- **Citation:** TCN-2018-NCLT-01853
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/r-k-polytex-pvt-ltd-cp-no-ib-568-nd-2017-61e3746f

## Summary

### Background

J.J.Plastalloy Pvt. Ltd., an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against R.K.Polytex Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments amounting to Rs. 50,29,358/= for goods supplied between 14.07.2016 and 04.03.2017, evidenced by 16 invoices. After intermittent payments, a balance of Rs. 13,45,444/= remained due, along with interest. A statutory demand notice was issued on 19.08.2017, demanding the outstanding amount and interest. The corporate debtor responded with a vague dispute regarding the quality and quantity of the supplied goods.

## Facts

J.J.Plastalloy Pvt. Ltd. (Operational Creditor) supplied plastic granules and master batches to R.K.Polytex Pvt. Ltd. (Corporate Debtor). 16 invoices were raised between 14.07.2016 and 04.03.2017, totaling Rs. 50,29,358/=. R.K.Polytex Pvt. Ltd. made intermittent payments, leaving a balance of Rs. 13,45,444/= outstanding. A statutory demand notice was issued on 19.08.2017, demanding Rs. 13,45,444/= plus interest at 24% per annum. R.K.Polytex Pvt. Ltd. replied on 28.08.2017, disputing the quality and quantity of the supplied goods. J.J.Plastalloy Pvt. Ltd. sent a rejoinder on 05.09.2017, denying any deficiency in the quality of goods. An advance copy of the application was sent to R.K.Polytex Pvt. Ltd. on 30.11.2017. The notice was unclaimed despite an attempt for

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## Issues and analysis

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

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The Tribunal observed that the operational creditor had provided sufficient evidence of

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** In this case, the Tribunal found that the operational creditor had met all the

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** JJ PLASTALLOY…
- **Respondents:** R.K.Polytex Pvt.…

## Timeline

- **2016-07-14 — Commencement of Invoice…**: Invoices raised…
- **2017-03-04 — End of Invoic…**: Invoices raised ending…

## 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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