# In the matter of S & H Manufacturing and Trading Pvt. Ltd. C.P. (IB) No.1515-KB-2018

> NCLT judgment dated 2019-02-13. Citation: TCN-2019-NCLT-04868. Machinery Agencies (India), an operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 13 Feb 2019
- **Citation:** TCN-2019-NCLT-04868
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/s-h-manufacturing-and-trading-pvt-ltd-cp-ib-no1515-kb-2018-530361cf

## Summary

### Background

Machinery Agencies (India), an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against S & H Manufacturing and Trading Pvt. Ltd., the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed that the corporate debtor defaulted in paying an outstanding amount of Rs. 3,32,520/- along with interest at 18% p.a. for goods supplied. The operational creditor submitted invoices, a ledger account, a bank certificate, and a demand notice as evidence. The corporate debtor failed to appear despite receiving notice.

## Facts

Machinery Agencies (India), a partnership firm and the operational creditor, supplied 'Natural Raw Rubber RSS' to S & H Manufacturing and Trading Pvt. Ltd., the corporate debtor. The operational creditor raised invoices for the goods supplied, which became due for payment. Two invoices dated 07.10.2017 and 28.11.2017 were raised. The corporate debtor made 'On Account' payments from time to time, with the last payment made on 19.12.2017, leaving an outstanding amount of Rs. 3,32,520/-. The operational creditor issued a demand notice to the corporate debtor on 21.08.2018, but received no reply. The corporate debtor failed to make payment of the outstanding amount along with interest at 18% p.a. despite reminders. The operational creditor submitted copies of invoices,

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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 Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency

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**Reasoning:** The court observed that the operational creditor had furnished copies of invoices, a

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**Interpretation:** The court interpreted Section 9 of the I&B Code to mean that if the

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**Application:** The court applied the ratio to the facts by finding that the operational

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## Parties

- **Judges:** Jinan…
- **Appellants:** Machinery…
- **Respondents:** S & H Manufacturin…
- **Advocates:** P.K. Jew…; Pooja Jew…

## Timeline

- **2017-10-07 — Invoice…**: One of the two invoices raised by the Operational Creditor upon delivery of goods to the…
- **2017-11-28 — Invoice…**: One of the two invoices raised by the Operational Creditor upon delivery of goods to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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