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

> NCLT judgment dated 2021-12-24. Citation: TCN-2021-NCLT-00026. 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-00026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/royal-polyurethane-india-private-limited-ib-230-nd-2020-ace1b820

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, by Newgen Speciality Plastics Ltd. (Operational Creditor) seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against 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

Newgen Speciality Plastics Ltd. (Operational Creditor) filed an application under Section 9 of the IBC, 2016, to initiate CIRP against Royal Polyurethane India Private Limited (Corporate Debtor) for defaulting on payments. 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. The purchase order was for Rs. 4,67,98,086.00. The Operational Creditor supplied goods and issued invoices, and the Corporate Debtor made partial payments. The last delivery was on 15.03.2019. The Operational Creditor sent a demand notice for Rs. 27,15,669/-, which was returned

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the IBC, 2016, for …

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

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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 of the IBC provides a mechanism for operational creditors to recover

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

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## Parties

- **Judges:** P.S.N. P…; Narender Kumar…
- **Appellants:** NEWGEN SPECIALITY…
- **Respondents:** Royal Polyurethane…

## 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 box and carrier frame was delivered, and an invoice…

## 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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