# In the matter of Siddhi Vinayak Polymer Pvt. Ltd. IB No. 656-(ND)-2018

> NCLT judgment dated 2018-10-25. Citation: TCN-2018-NCLT-00494. Natroyal Industries Pvt. Ltd., the Operational Creditor, filed an application against Siddhi…

- **Court:** NCLT
- **Order date:** 25 Oct 2018
- **Citation:** TCN-2018-NCLT-00494
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/siddhi-vinayak-polymer-pvt-ltd-ib-no-656-nd-2018-a0ffc70b

## Summary

### Background

Natroyal Industries Pvt. Ltd., the Operational Creditor, filed an application against Siddhi Vinayak Polymer Pvt. Ltd. (SVPPL), the Corporate Debtor, based on a claim of Rs. 77,37,705/- as of 2018-06-01, arising from the supply of leather clothes. The Corporate Debtor allegedly defaulted on payments for the invoices. The Operational Creditor claimed unpaid invoices, interest for delayed payments at 24% p.a., and a difference due to non-production of C-Forms for inter-state sales. Prior to the Section 8 notice, the Corporate Debtor had issued cheques that were dishonored due to insufficient funds. A Section 8 notice was issued on 2017-12-01, but the petitioner was unsuccessful in serving it through post. The petitioner claims that the Section 8 notice was duly served

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## Facts

Natroyal Industries Pvt. Ltd. (Operational Creditor) filed an application against Siddhi Vinayak Polymer Pvt. Ltd. (Corporate Debtor) claiming Rs. 77,37,705/- as of 2018-06-01. This claim arose from the supply of leather clothes based on the Corporate Debtor's requisitions. The claim includes unpaid invoices amounting to Rs. 57,82,974/-, interest for delayed payment at 24% p.a. amounting to Rs. 11,26,440/-, and Rs. 8,28,030/- due to the non-production of C-Forms for inter-state sales. The Corporate Debtor had issued cheques for the unpaid invoices, but they were dishonored due to insufficient funds. A Section 8 notice under IBC, 2016 was issued on 2017-12-01. The Operational Creditor claims the Section 8 notice was served via email. The Corporate Debtor failed to

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## Issues and analysis

### Issue 1: Whether there is a debt due to the …

**Ratio:** The existence of a debt is a fundamental requirement for initiating CIRP under the IBC.

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**Reasoning:** The Tribunal found that based on the records furnished and the averments in the

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**Interpretation:** The term 'debt' under IBC encompasses both financial and operational debts. The

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**Application:** The Tribunal applied the definition of 'debt' to the invoices and other

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** Natroyal Industrie…
- **Respondents:** Siddhi Vinayak…

## Timeline

- **2017-12-01 — Section 8 Noti…**: Section 8 notice of IBC, 2016 was…
- **2018-06-01 — Date of…**: Date of filing this petition and…

## 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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