# In the matter of Shreeom wires Pvt. Ltd. (IB)-645(ND)-2018

> NCLT judgment dated 2018-08-10. Citation: TCN-2018-NCLT-00952. BLS Polymers Ltd., the operational creditor, filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 10 Aug 2018
- **Citation:** TCN-2018-NCLT-00952
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shreeom-wires-pvt-ltd-ib-645nd-2018-a4d20b20

## Summary

### Background

BLS Polymers Ltd., the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Shreeom Wires Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor had defaulted on payments for goods supplied. The operational creditor and corporate debtor had business dealings, with the operational creditor supplying LT XLPE compound. Two invoices, each for Rs. 6,18,750/-, were raised on 10.05.2017 and 30.05.2017. The corporate debtor failed to make timely payments, leading to an accumulation of debt including interest at 18% per annum.

## Facts

BLS Polymers Ltd. (operational creditor) supplied LT XLPE compound to Shreeom Wires Pvt. Ltd. (corporate debtor) under two purchase orders. Invoices dated 10.05.2017 and 30.05.2017, each for Rs. 6,18,750/-, were raised. The corporate debtor failed to make timely payments, leading to an accumulation of debt including interest at 18% per annum. The total amount due, including interest, was Rs. 14,34,933/-. The corporate debtor issued two cheques, one dated 10.07.2017 and another dated 10.12.2017, each for Rs. 6,18,750/-, which were dishonored. The operational creditor issued a notice under Section 8 of the IBC, which was not replied to. The operational creditor filed a petition under Section 9 of the IBC for initiation of CIRP. The corporate debtor did not appear despite

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor under Section 9 of the Insolvency and …

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

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**Reasoning:** The court reasoned that the operational creditor had demonstrated a default by the

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

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**Application:** In this case, the court applied Section 9 of the IBC to the facts presented and

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## Parties

- **Judges:** Ina Mal…; Deepa Kr…; +1 more
- **Appellants:** BLS Polyme…
- **Respondents:** M/s. Shreeom…

## Timeline

- **2017-05-10 — Invoice…**: Invoice raised for Rs.…
- **2017-05-30 — Invoice…**: Invoice raised for Rs.…

## 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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