# In the matter of Shri Aster Silicates Ltd. CP No. (IB)-366-9-NCLT-AHM-2018

> NCLT judgment dated 2018-10-15. Citation: TCN-2018-NCLT-00569. The case involves an application filed by Mr. Hasmukhbhai Somabhai Patel, an operational…

- **Court:** NCLT
- **Order date:** 15 Oct 2018
- **Citation:** TCN-2018-NCLT-00569
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shri-aster-silicates-ltd-cp-no-ib-366-9-nclt-ahm-2018-6614a4d8

## Summary

### Background

The case involves an application filed by Mr. Hasmukhbhai Somabhai Patel, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Shri Aster Silicates Limited, a corporate debtor. The applicant claimed that the corporate debtor defaulted on salary payments amounting to Rs. 12,35,000/-. The applicant had been rendering services to the company since 1996, and the company stopped paying salary after 30.06.2016. Despite demand notices, the respondent did not clear the debt or raise any dispute.

## Facts

Mr. Hasmukhbhai Somabhai Patel, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Shri Aster Silicates Limited, a corporate debtor. Mr. Patel claimed that he was appointed as an Accountant in the respondent company and had been rendering his services since 1996. The respondent company stopped paying his salary after 30.06.2016, and an amount of Rs. 12,35,000/- was due as of 30.06.2016. Despite a demand notice dated 15.05.2018, the respondent did not reply or dispute the debt. The petition was filed on 26th July, 2018. The respondent, Shri Aster Silicates Limited, admitted to the debt and stated that it had no objection to the admission of the petition under Section 9 of the IBC. The respondent company had

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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, read with Rule 4 of the Insolvency

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**Reasoning:** The court observed that the application was complete as per sub-section 2 of Section 9 of

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The court found that the application was complete and the respondent did not

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## Parties

- **Judges:** Manorama…
- **Appellants:** Hasmukhbhai…
- **Respondents:** Aster Silicates…; Aster Silicates…

## Timeline

- **1996-01-01 — Applicant's Ap…**: Mr. Hasmukhbhai Somabhai Patel was appointed as an Accountant in Shri Aster Silicates…
- **2016-05-11 — Salary Pa…**: Shri Aster Silicates Limited was paying salary to Mr. Patel in installments until this…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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