# In the matter of Selathaar Tanning Industries Private Limited IBA-87-2020

> NCLT judgment dated 2021-04-09. Citation: TCN-2021-NCLT-02418. The case involves an Insolvency and Bankruptcy Application (IBA/87/2020) filed under Section 9…

- **Court:** NCLT
- **Order date:** 9 Apr 2021
- **Citation:** TCN-2021-NCLT-02418
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/selathaar-tanning-industries-private-limited-iba-87-2020-e03a88eb

## Summary

### Background

The case involves an Insolvency and Bankruptcy Application (IBA/87/2020) filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The application was initiated by M/s. Prakash Chemical Company, the Operational Creditor, against M/s. Selathaar Tanning Industries Private Limited, the Corporate Debtor, due to a default in payment of Rs.1,51,788/- as of 2017-06-12, along with interest at 24% per annum. An Interim Resolution Professional (IRP) was appointed in a prior order (IBA/83/2020).

## Facts

M/s. Prakash Chemical Company, acting as the Operational Creditor, filed an Insolvency and Bankruptcy Application (IBA/87/2020) against M/s. Selathaar Tanning Industries Private Limited, the Corporate Debtor. The application was based on the Corporate Debtor's default in paying Rs.1,51,788/- as of 2017-06-12, with an interest rate of 24% per annum. The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP). An Interim Resolution Professional (IRP) had already been appointed in a prior order (IBA/83/2020). The court ultimately dismissed the application.

## Issues and analysis

### Issue 1: Whether the application IBA/87/2020 filed by the Operational Creditor to initiate Corporate …

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

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**Reasoning:** The court considered the application filed by the Operational Creditor and the

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**Interpretation:** The interpretation of Section 9 of the IBC, 2016, allows operational creditors

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**Application:** In this case, the court applied the principles of Section 9 to the facts

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** Prakash Chemical…
- **Respondents:** Selathaar Tanning…
- **Advocates:** Ramaswamy…

## Timeline

- **2017-06-12 — Default…**: The Corporate Debtor…
- **2020-01-01 — IBA/87/2020…**: M/s. Prakash Chemical Company filed…

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