# In the matter of Sharp Graphics Pvt. Ltd. CP-IB-332-ND-2018

> NCLT judgment dated 2018-11-12. Citation: TCN-2018-NCLT-00360. The case involves an application filed by Neelam Cromwell, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 12 Nov 2018
- **Citation:** TCN-2018-NCLT-00360
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sharp-graphics-pvt-ltd-cp-ib-332-nd-2018-a2fdd0d4

## Summary

### Background

The case involves an application filed by Neelam Cromwell, an operational creditor, against Sharp Graphics Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The operational creditor claimed that the corporate debtor defaulted on a payment of Rs. 11,00,419.80 due on 30.11.2016 for the supply of spare parts for offset printing machines. A statutory demand notice was issued on 11.02.2018, but the corporate debtor failed to repay the debt or demonstrate any dispute. The corporate debtor filed a reply stating that the application was baseless and false, contending that the company provides employment to many workers and has suffered financial setbacks.

## Facts

Neelam Cromwell, operating as an operational creditor, supplied spare parts for offset printing machines to Sharp Graphics Pvt. Ltd., the corporate debtor. The corporate debtor failed to pay an amount of Rs. 11,00,419.80, which became due on 30.11.2016. The operational creditor issued a statutory demand notice on 11.02.2018, demanding repayment within 10 days or demonstration of a dispute. The corporate debtor received the notice on 16.02.2018 but did not respond with payment or a notice of dispute. The operational creditor then filed an application under Section 9 of the IBC, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). The corporate debtor filed a reply contending that the application was baseless and false, citing financial setbacks and

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## Issues and analysis

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

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

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**Reasoning:** The tribunal found that the operational creditor had established the existence of debt

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to initiate

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**Application:** The tribunal applied Section 9(5) of the IBC, 2016, to the facts of the case

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## Parties

- **Judges:** R. VARADH…; V.K. SUB…
- **Appellants:** M/s. Neelam…
- **Respondents:** Sharp Graphics…; Sharp Graphics…

## Timeline

- **2016-11-30 — Payment Du…**: Payment of Rs. 11,00,419.80 became due from…
- **2018-02-11 — Statutory Dema…**: Neelam Cromwell issued a statutory…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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