# In the matter of Shriram SEPL Composites Private Limited IBA-911-2019

> NCLT judgment dated 2020-12-23. Citation: TCN-2020-NCLT-00024. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 23 Dec 2020
- **Citation:** TCN-2020-NCLT-00024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shriram-sepl-composites-private-limited-iba-911-2019-6faa0f58

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Vasavi Bala Resins Private Limited (Operational Creditor) against Shriram SEPL Composites Private Limited (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default of Rs. 55,24,929/-, including a principal sum of Rs. 43,02,902/- and interest of Rs. 12,22,027/-, with the date of default stated as 14.06.2017. The Corporate Debtor disputed the opening balance and claimed full settlement of dues as per a settlement agreement dated 07.09.2019. The Tribunal directed the Corporate Debtor to furnish a tabulation of invoices and payments, along with the settlement agreement.

## Facts

Vasavi Bala Resins Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Shriram SEPL Composites Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default of Rs. 55,24,929/-, comprising a principal sum of Rs. 43,02,902/- and interest of Rs. 12,22,027/-, with the date of default being 14.06.2017. The Operational Creditor supplied resin to the Corporate Debtor based on purchase orders from 26.05.2017 to 28.06.2018, raising 11 invoices. The Corporate Debtor issued three post-dated cheques, which the Operational Creditor was later asked not to present for realization. The Corporate Debtor disputed the opening

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the IBC, 2016 is …

**Ratio:** Section 9(5) of the IBC, 2016, outlines the conditions for admitting an application for

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**Reasoning:** The Tribunal considered the facts and circumstances of the case, including the

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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 Tribunal found that the Operational Creditor had met the requirements of

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Vasavi Bala…
- **Respondents:** Shriram SEPL…

## Timeline

- **2017-05-26 — Supply of Resin…**: Operational Creditor starts supplying Resin to…
- **2018-06-28 — Supply of Res…**: Operational Creditor completes supplying Resin to Corporate Debtor based on purchase…

## 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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