# In the matter of Selathaar Tanning Industry Private Limited IBA-83-2020

> NCLT judgment dated 2021-04-09. Citation: TCN-2021-NCLT-02413. This case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 9 Apr 2021
- **Citation:** TCN-2021-NCLT-02413
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/selathaar-tanning-industry-private-limited-iba-83-2020-8622566c

## Summary

### Background

This case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s. Amit Dye Chem (Operational Creditor) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Selathaar Tanning Industries Private Limited (Corporate Debtor). The Operational Creditor claims that the Corporate Debtor defaulted in paying Rs.12,04,132/- as of 02.03.2018, along with interest at 24% per annum. The application was filed on 25.09.2019 and numbered as IBA/83/2020. Notices were issued to the Corporate Debtor, but there was no representation on their behalf, leading to an ex-parte order.

## Facts

M/s. Amit Dye Chem, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Selathaar Tanning Industries Private Limited, the Corporate Debtor. The Operational Creditor claimed a default of Rs.12,04,132/- as of 02.03.2018, with interest at 24% per annum. The debt arose from the supply of chemical products, including Sodium Bicarbonate, Soda Ash, and Hypo, for which 30 invoices were raised. The application was filed on 25.09.2019. Notices were issued to the Corporate Debtor, but they were initially returned unserved. The Corporate Debtor was eventually served at multiple addresses, but no representation was made on their behalf. The

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 9(5) of the IBC, 2016, allows for the admission of an application if a debt is

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**Reasoning:** The Adjudicating Authority determined that the total amount of invoices from item No.21

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**Interpretation:** The IBC, 2016, provides a framework for resolving insolvency and bankruptcy

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**Application:** The ratio and reasoning were applied to the facts of the case, where the debt

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** M/s. Amit D…
- **Respondents:** M/s. Selathaar…

## Timeline

- **2018-03-02 — Default…**: Corporate Debtor defaulted in paying…
- **2019-09-25 — Application Fi…**: Application IBA/83/2020…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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