# In the matter of Servalakshmi Paper Ltd CP-514-(IB)-CB-2017

> NCLT judgment dated 2017-06-21. Citation: TCN-2017-NCLT-00791. Sakthi Energy Private Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 21 Jun 2017
- **Citation:** TCN-2017-NCLT-00791
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/servalakshmi-paper-ltd-cp-514-ib-cb-2017-6c63e79e

## Summary

### Background

Sakthi Energy Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Servalakshmi Paper Ltd. The petitioner sought the initiation of the Corporate Insolvency Resolution Process (CIRP) and the appointment of an Interim Resolution Professional (IRP). The Corporate Debtor failed to appear despite multiple notices, including email communications and speed post, leading the court to proceed ex parte.

## Facts

Sakthi Energy Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Servalakshmi Paper Ltd. (Corporate Debtor) due to an outstanding debt of Rs. 10,62,04,523/-. The Corporate Debtor failed to make any payments. The Operational Creditor sent a statutory notice on 18.05.2017, demanding the sum, but received no reply. The Corporate Debtor was notified via speed post on 05.06.2017, with delivery confirmed on 07.06.2017, and through email communications on 09.06.2017 and 10.06.2017. Despite these notices, the Corporate Debtor did not appear for the hearing. The Corporate Debtor had previously admitted the claim of the Petitioner. The Operational Creditor filed an affidavit stating that the Corporate

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## Issues and analysis

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

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

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**Reasoning:** The court reasoned that the Operational Creditor had demonstrated that a debt was due and

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**Interpretation:** Section 9 is interpreted to mean that if an operational creditor can prove the

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**Application:** In this case, the Operational Creditor provided evidence of the outstanding

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## Parties

- **Judges:** Ch. Mohd Sharief…; S. VIJAYARA…
- **Appellants:** SAKTHI ENERGY PVT…
- **Respondents:** SERVALAKSHMI…

## Timeline

- **2017-05-05 — Application…**: Operational Creditor filed an application under Section 9 of the Insolvency and…
- **2017-05-18 — Statutory Not…**: Operational Creditor sent a statutory notice to the Corporate Debtor demanding the…

## 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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