# 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-04861. The case involves an application filed by Machinery Agencies (India), an operational creditor,…

- **Court:** NCLT
- **Order date:** 13 Feb 2019
- **Citation:** TCN-2019-NCLT-04861
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/s-h-manufacturing-and-trading-pvt-ltd-cp-ib-no1515-kb-2018-e47da8f0

## Summary

### Background

The case involves an application filed by Machinery Agencies (India), an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against S & H Manufacturing and Trading Pvt. Ltd., the corporate debtor. 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 had submitted invoices and a demand notice to the corporate debtor, but received no payment or reply.

## Facts

Machinery Agencies (India), the operational creditor, supplied 'Natural Raw Rubber RSS' to S & H Manufacturing and Trading Pvt. Ltd., the corporate debtor. Invoices were raised and submitted, becoming due on their respective dates. Two invoices, dated 07.10.2017 and 28.11.2017, were raised upon delivery of goods. The corporate debtor made 'On Account' payments, with the last payment on 19.12.2017, leaving an outstanding amount of Rs. 3,32,520/-. A demand notice was issued to the corporate debtor on 21.08.2018, but no reply or payment was received within 10 days. The corporate debtor failed to make the payment of Rs. 3,32,520/- plus interest at 18% p.a., despite reminders. The operational creditor submitted copies of invoices, a ledger account, a bank certificate,

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency & Bankruptcy Code, 2016, read with Rule 6 of the

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**Reasoning:** The court reasoned that the Operational Creditor had furnished all necessary documents as

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**Interpretation:** The court interpreted Section 9(3) of the I&B Code to mean that the

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**Application:** The court applied the ratio to the facts by noting that the Operational

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## Parties

- **Judges:** Jinan…
- **Appellants:** Machinery…
- **Respondents:** S & H Manufacturin…

## Timeline

- **2017-10-07 — Invoice…**: One of the invoices raised by the…
- **2017-11-28 — Invoice…**: Another invoice raised by 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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