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

> NCLT judgment dated 2019-03-26. Citation: TCN-2019-NCLT-04350. The case involves an application filed by RQS Engineering Pvt. Ltd., the Operational Creditor…

- **Court:** NCLT
- **Order date:** 26 Mar 2019
- **Citation:** TCN-2019-NCLT-04350
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/reliable-insupack-pvt-ltd-ib-1117-nd-2018-aa6bd166

## Summary

### Background

The case involves an application filed by RQS Engineering Pvt. Ltd., the Operational Creditor (OC), under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Reliable Insupack Pvt. Ltd., the Corporate Debtor (CD). The OC claimed default on payment for goods and raw materials supplied to the CD. A previous petition (IB-233/ND/2018) was withdrawn after a settlement, but the CD allegedly defaulted again by dishonoring cheques issued as part of that settlement.

## 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. The Corporate Debtor had placed purchase orders for goods and raw materials with the Operational Creditor. Initially, Rs. 17,97,327/- was due as on 30.11.2017, leading to a previous petition (IB.233/ND/2018) which was later withdrawn on 3.4.2018, due to a settlement where the Corporate Debtor agreed to pay the amount. The Corporate Debtor issued two cheques, one for Rs. 6,00,000/- dated 3.5.2018 and another for Rs. 5,97,327/- dated 2.6.2018. The Operational Creditor received the first installment of Rs. 6,00,000/-, but the remaining amount of Rs. 11,97,327/-

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** Section 9(5) of the IBC, 2016, allows for the admission of an application if a default

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**Reasoning:** The Tribunal noted that the Corporate Debtor had issued cheques that were subsequently

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**Interpretation:** The legal issue is interpreted in the context of the IBC, which aims to resolve

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

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

## Timeline

- **1998-07-10 — Incorporation of…**: Reliable Insupack Pvt. Ltd. incorporated with nominal share capital of Rs. 2,50,00,000/-…
- **2017-11-30 — Amount D…**: Rs. 17,97,327/- was due to…

## 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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