# In the matter of Sardhana Paper (P) Ltd. Company Petition (IB)No.160-ALD-2017

> NCLT judgment dated 2018-05-02. Citation: TCN-2018-NCLT-01467. The case involves a Company Petition (IB) No. 160/ALD/2017 filed under Section 9 of the…

- **Court:** NCLT
- **Order date:** 2 May 2018
- **Citation:** TCN-2018-NCLT-01467
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sardhana-paper-p-ltd-company-petition-ibno160-ald-2017-58df109b

## Summary

### Background

The case involves a Company Petition (IB) No. 160/ALD/2017 filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s Raj Duplex Pvt. Ltd. (Operational Creditor) against M/s Sardhana Papers (P) Ltd. (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed that the corporate debtor owed them a total debt of Rs. 85,53,570 as of 10.02.2017, including interest, for the supply of goods. The corporate debtor disputed the claim, alleging discrepancies in the ledger accounts and raising concerns about the authenticity of debit/credit notes. The corporate debtor also initiated criminal proceedings under Section 138 of the Negotiable Instruments Act against the operational creditor due to dishonor of

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## Facts

M/s Raj Duplex Pvt. Ltd. (Operational Creditor) filed a petition against M/s Sardhana Papers (P) Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming an operational debt of Rs. 85,53,570 as of 10.02.2017, including interest, for the supply of waste paper. The Corporate Debtor argued that there were discrepancies in the ledger accounts and that debit/credit notes were not properly accounted for. The Corporate Debtor also claimed that a settlement had been reached, and twelve cheques of Rs. 4,00,000 each were issued to the Operational Creditor. However, the Operational Creditor denied the validity of the debit notes, alleging forgery of signatures and fabrication of the documents. The Operational Creditor also initiated criminal

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established a …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court found that the Operational Creditor had provided sufficient evidence to

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**Interpretation:** The court interpreted Section 9 to mean that if the operational creditor

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

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## Parties

- **Judges:** V. P. S…; Saroj Ra…
- **Appellants:** M/s Raj Duplex…
- **Respondents:** M/s Sardhana…

## Timeline

- **2016-10-01 — Ledger Accoun…**: Ledger account period from 1…
- **2016-12-01 — Outstandin…**: Outstanding dues as on…

## 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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