# In the matter of Royal Polyurethane (India) Private Limited IB-230-ND-2020

> NCLT judgment dated 2021-12-24. Citation: TCN-2021-NCLT-00031. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 24 Dec 2021
- **Citation:** TCN-2021-NCLT-00031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/royal-polyurethane-india-private-limited-ib-230-nd-2020-9540e881

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s Newgen Speciality Plastics Ltd. (Operational Creditor) seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Royal Polyurethane India Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for goods supplied. The Corporate Debtor contested the application, alleging a pre-existing dispute and claiming that the Operational Creditor owed them money.

## Facts

M/s Newgen Speciality Plastics Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Royal Polyurethane India Private Limited (Corporate Debtor) for non-payment of dues. The Operational Creditor is a manufacturer and supplier of plastic products, while the Corporate Debtor is in the business of manufacturing basic chemicals. In 2018, the Corporate Debtor placed a purchase order with the Operational Creditor for Ice Box and Carrier Frame, amounting to Rs. 4,67,98,086.00. The Operational Creditor fulfilled its contractual obligations and issued invoices, which the Corporate Debtor accepted and made partial payments against. The last delivery

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## Issues and analysis

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

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

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**Reasoning:** The Adjudicating Authority found that the Operational Creditor had supplied goods to the

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

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**Application:** The Adjudicating Authority applied Section 9 of the IBC to the facts of the

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## Parties

- **Judges:** P.S.N. P…; Narender Kumar…
- **Appellants:** M/s Newgen…
- **Respondents:** M/s Royal…

## Timeline

- **2018-08-10 — Purchase…**: Corporate Debtor placed a purchase order with the Operational Creditor for Ice Box and…
- **2019-03-15 — Last Del…**: Last leg of delivery containing ice…

## 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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