# In the matter of Segno Ceramics Private Limited TCP (IB) No.105-9-AMR-2019 in CP (IB) No. 381-9-HDB-2019

> NCLT judgment dated 2019-11-22. Citation: TCN-2019-NCLT-00484. This case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Nov 2019
- **Citation:** TCN-2019-NCLT-00484
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/segno-ceramics-private-limited-tcp-ib-no105-9-amr-2019-in-cp-ib-no-381-9-hdb-201-2e74b773

## Summary

### Background

This case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against Segno Ceramics Pvt Ltd due to default in payment of an operational debt. Trishal Minerals, the petitioner, is a proprietorship firm that supplies chemicals and minerals. Segno Ceramics Pvt Ltd, the respondent, is a private limited company engaged in the manufacture and trade of floor tiles, vitrified tiles, and allied products. Between March 9, 2017, and January 25, 2018, Segno Ceramics placed orders for feldspar powder worth Rs. 20,35,500. Trishal Minerals supplied the powder between April 29, 2017, and February 5, 2018, raising invoices periodically. Segno Ceramics made some payments, but

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## Facts

Trishal Minerals, a proprietorship firm, supplied feldspar powder to Segno Ceramics Pvt Ltd, a private limited company engaged in manufacturing floor and vitrified tiles. Between March 9, 2017, and January 25, 2018, Segno Ceramics placed orders for feldspar powder worth Rs. 20,35,500. Trishal Minerals supplied the powder from April 29, 2017, to February 5, 2018, and raised invoices. Segno Ceramics made some payments, but by April 6, 2018, Rs. 34,16,039 remained outstanding. Trishal Minerals issued a notice on July 6, 2018, under Section 8 of the IBC, demanding payment of the outstanding dues and interest of Rs. 4,65,979 at 18% per annum. Segno Ceramics admitted the claim but disputed the interest, agreeing to pay the principal in ten installments between November 1,

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## Issues and analysis

### Issue 1: Whether Segno Ceramics Pvt Ltd defaulted in payment …

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

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**Reasoning:** The court noted that Segno Ceramics admitted the claim and made part payment against the

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**Interpretation:** The legal principle is that if a corporate debtor admits to owing an

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**Application:** In this case, Segno Ceramics admitted to owing Rs. 34,16,039 to Trishal

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## Parties

- **Judges:** Janab Mohammed…
- **Appellants:** Trishal Mi…
- **Respondents:** Segno Ceramics…

## Timeline

- **2017-03-09 — Order Placeme…**: Segno Ceramics started placing…
- **2018-01-25 — Order Placem…**: Segno Ceramics stopped placing…

## 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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