# In the matter of Shakti Bio Science Limited CP No. (IB) 150-9-NCLT-AHM-2017

> NCLT judgment dated 2018-02-09. Citation: TCN-2018-NCLT-01855. Kadillac Chemicals Private Limited (KCPL) filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 9 Feb 2018
- **Citation:** TCN-2018-NCLT-01855
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shakti-bio-science-limited-cp-no-ib-150-9-nclt-ahm-2017-5791139b

## Summary

### Background

Kadillac Chemicals Private Limited (KCPL) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Shakti Bio Science Limited (SBSL). KCPL claimed to be an operational creditor of SBSL. The claim arose from the supply of chemical materials by KCPL to SBSL. KCPL alleged that SBSL defaulted on payments for the supplied materials. A Memorandum of Understanding (MOU) was entered into between KCPL and SBSL for job work, where SBSL would supply raw materials to KCPL, and KCPL would carry out job work and supply finished goods. Disputes arose regarding the non-payment of outstanding amounts and the retention of raw materials.

## Facts

Kadillac Chemicals Private Limited (KCPL) supplied chemical materials to Shakti Bio Science Limited (SBSL) from 2013. As of October 17, 2013, SBSL owed KCPL Rs. 69,25,717. SBSL made part payments totaling Rs. 47,69,709.64 after October 17, 2013. A Memorandum of Understanding (MOU) was entered between KCPL and SBSL on October 31, 2013, for job work, where SBSL would supply raw materials to KCPL for processing. KCPL raised invoices for job work and other charges. KCPL claimed that SBSL did not pay for the invoices. SBSL issued three cheques after the job work agreement, which were later dishonored. KCPL issued a demand notice to SBSL on August 28, 2017, demanding payment of Rs. 35,82,201 with interest. SBSL raised objections, claiming KCPL retained raw materials and did

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## Issues and analysis

### Issue 1: Whether the petition filed by KCPL under Section 9 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** The Adjudicating Authority must reject the application under Section 9(5)(2)(d) if notice

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**Reasoning:** The Tribunal considered whether the petition was complete in all respects and whether a

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**Interpretation:** Section 9 of the IBC outlines the requirements for an operational creditor to

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**Application:** The Adjudicating Authority found that the petition was complete in all respects

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## Parties

- **Judges:** BIKKI RAVEENDRA…; Manorama…
- **Appellants:** Kadillac Chemicals…
- **Respondents:** Shakti Bio…

## Timeline

- **2013-10-31 — MOU Ente…**: Memorandum of Understanding (MOU) entered…
- **2017-08-28 — Demand Notice…**: KCPL issued a demand notice to SBSL…

## 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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