# In the matter of Shree Balaji Prin topack Pvt. Ltd. CP-IB-391-ND-2018

> NCLT judgment dated 2018-06-13. Citation: TCN-2018-NCLT-01278. Usaka Electrotech Pvt. Limited, the operational creditor, filed an application against Shree…

- **Court:** NCLT
- **Order date:** 13 Jun 2018
- **Citation:** TCN-2018-NCLT-01278
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-balaji-prin-topack-pvt-ltd-cp-ib-391-nd-2018-0f55dfdf

## Summary

### Background

Usaka Electrotech Pvt. Limited, the operational creditor, filed an application against Shree Balaji Printopack Pvt. Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed that the corporate debtor defaulted on payments for packing materials supplied under several invoices. The invoices were allegedly accepted without dispute, but payment remained pending despite the goods being delivered to the satisfaction of the corporate debtor. A demand notice was issued on 2018-03-14, and the corporate debtor acknowledged the debt but sought time for payment.

## Facts

Usaka Electrotech Pvt. Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Shree Balaji Printopack Pvt. Limited (Corporate Debtor). The Operational Creditor claimed that it supplied packing materials to the Corporate Debtor under several invoices, which were accepted without dispute. However, payments totaling Rs.7,94,757/- remained outstanding. Despite telephonic reminders, no payment was made. A demand notice was issued on 2018-03-14, and the Corporate Debtor acknowledged the debt on 2018-03-22 but requested more time to make the payment. The Corporate Debtor, through its counsel and an affidavit supported by a Board Resolution, conceded to the default and admitted to facing insolvency. 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(5) of the IBC, 2016 allows for the admission of an application if the

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**Reasoning:** The court reasoned that the Corporate Debtor conceded to the default through its counsel

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**Interpretation:** Section 9 of the IBC, 2016 provides the procedure for an operational creditor

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**Application:** In this case, the Corporate Debtor admitted to the debt and default, which

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## Parties

- **Judges:** R. VARADH…; DR.V.K.Su…
- **Appellants:** Usaka Electrotech…
- **Respondents:** Shree Balaji…

## Timeline

- **2018-03-14 — Demand Notice…**: Usaka Electrotech Pvt. Ltd. issued a demand notice to Shree Balaji Printopack Pvt. Ltd.…
- **2018-03-22 — Acknowledgemen…**: Shree Balaji Printopack Pvt. Ltd. acknowledged…

## 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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