# In the matter of Siang Tea and Industries Private Limited CP. (IB) No. 13-GB-2021

> NCLT judgment dated 2021-11-23. Citation: TCN-2021-NCLT-00439. The case involves an application filed by Kishan Kumar Daga, an operational creditor, under…

- **Court:** NCLT
- **Order date:** 23 Nov 2021
- **Citation:** TCN-2021-NCLT-00439
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/siang-tea-and-industries-private-limited-cp-ib-no-13-gb-2021-06e016ee

## Summary

### Background

The case involves an application filed by Kishan Kumar Daga, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Siang Tea and Industries Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for coal supplied between April 2018 and August 2019. The corporate debtor opposed the application, arguing that there was no agreed-upon payment period, that payments were made periodically, and that the demand notice was issued during the COVID-19 moratorium period.

## Facts

Kishan Kumar Daga, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Siang Tea and Industries Private Limited, a corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for coal supplied between April 2, 2018, and August 31, 2019, amounting to Rs. 1,32,38,937. The operational creditor claimed a total debt of Rs. 1,51,77,515.00, including principal and interest calculated up to January 25, 2021. The corporate debtor made a last payment of Rs. 1,50,000 on August 7, 2020. The operational creditor issued a demand notice on January 25, 2021. The corporate debtor argued that there was no agreed-upon payment period, that payments were made periodically,

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## Issues and analysis

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

**Ratio:** Section 9 of the IBC requires the existence of a debt and a default in payment of that

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**Reasoning:** The court reasoned that the operational creditor failed to provide any contract or

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**Interpretation:** The interpretation of Section 9 of the IBC requires strict adherence to the

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**Application:** In this case, the operational creditor did not provide any evidence of an

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## Parties

- **Judges:** H.V. Subb…; Prasanta Kumar…
- **Appellants:** Kishan Kuma…
- **Respondents:** Siang Tea and…; BISWAJIT CH…
- **Advocates:** Arun K…; B. Chou…

## Timeline

- **2018-04-02 — Supply of Coa…**: Operational Creditor started…
- **2019-08-31 — Supply of Co…**: Operational Creditor stopped…

## 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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