# In the matter of Reliable Insupack Pvt. Ltd.. IB-1117-(ND)-2018

> NCLT judgment dated 2019-03-26. Citation: TCN-2019-NCLT-04341. This case involves an application filed by RQS Engineering Pvt. Ltd., the Operational Creditor…

- **Court:** NCLT
- **Order date:** 26 Mar 2019
- **Citation:** TCN-2019-NCLT-04341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/reliable-insupack-pvt-ltd-ib-1117-nd-2018-6d813f20

## Summary

### Background

This case involves an application filed by RQS Engineering Pvt. Ltd., the Operational Creditor (OC), against Reliable Insupack Pvt. Ltd., the Corporate Debtor (CD), under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The OC claimed that the CD defaulted on payments for goods and raw materials supplied based on purchase orders. A previous petition (IB-233/ND/2018) was withdrawn after a settlement, where the CD agreed to pay Rs. 17,97,327. However, the CD defaulted again, leading to the current application.

## Facts

RQS Engineering Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Reliable Insupack Pvt. Ltd. (Corporate Debtor) for default in payment of Rs. 11,97,327/-. The default arose from the supply of goods and raw materials based on purchase orders placed by the Corporate Debtor. Previously, a settlement was reached in a prior insolvency proceeding (IB-233/ND/2018) where the Corporate Debtor agreed to pay Rs. 17,97,327/-, leading to the withdrawal of the initial petition. However, the Corporate Debtor failed to honor the settlement, resulting in dishonored cheques. The date of default is 11.4.2018, and the total amount in default is Rs. 12,40,335/-. A demand notice was issued on 10.7.2018, but no payment

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

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

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**Reasoning:** The Tribunal noted that the Operational Creditor had provided sufficient evidence,

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

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**Application:** The Tribunal applied Section 9 to the facts, finding that the Operational

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** RQS Engineering…
- **Respondents:** Reliable Insupack…

## Timeline

- **1998-07-10 — Incorporation of…**: Reliable Insupack Pvt. Ltd. was incorporated with a nominal share capital of Rs.…
- **2017-11-30 — Previous D…**: Rs. 17,97,327/- was due…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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