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

> NCLT judgment dated 2021-12-24. Citation: TCN-2021-NCLT-00018. 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-00018
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/royal-polyurethane-india-private-limited-ib-230-nd-2020-a01b42e0

## 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). 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 supplied goods against invoices, and the Corporate Debtor made partial payments. A final invoice was raised on 15.03.2019. The Operational Creditor claimed an outstanding

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## Issues and analysis

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

**Ratio:** The Adjudicating Authority has the power to admit an application under Section 9 of the

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**Reasoning:** The court perused the pleadings, written submissions, and arguments advanced by the

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

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**Application:** The court found that the Operational Creditor had established a debt and

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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 Operational Creditor for Ice Box and…
- **2019-03-15 — Final In…**: Final invoice raised by…

## 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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