# In the matter of Sonarch International Private Limited C.P. No. 2438-I&BP-2019

> NCLT judgment dated 2019-10-14. Citation: TCN-2019-NCLT-01007. ABN Trade Link Private Limited filed a company petition seeking to initiate the Corporate…

- **Court:** NCLT
- **Order date:** 14 Oct 2019
- **Citation:** TCN-2019-NCLT-01007
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sonarch-international-private-limited-cp-no-2438-ibp-2019-960c307c

## Summary

### Background

ABN Trade Link Private Limited filed a company petition seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Sonarch International Private Limited, alleging default in payment of Rs. 60,98,19,636/-. The petitioner claimed to have supplied vitrified tiles, MS pipes, and TMT bars to the corporate debtor between 2013 and 2015. The corporate debtor acknowledged the liability in 2017.

## Facts

ABN Trade Link Private Limited (the Petitioner) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Sonarch International Private Limited (the Corporate Debtor). The Petitioner claimed that the Corporate Debtor defaulted in making payment of Rs. 60,98,19,636/-, which included interest at 24% per annum. The Petitioner had supplied vitrified tiles, MS pipes, and TMT bars to the Corporate Debtor between April 1, 2013, and March 31, 2015, and the last payment was received on March 30, 2015. The Corporate Debtor acknowledged the liability on November 1, 2017. After repeated requests, the Petitioner issued a recall notice on October 15, 2017, and a demand notice on June 7, 2019, under Section 8 of the IBC. The Corporate Debtor's counsel

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is in compliance with the provisions of …

**Ratio:** Section 8 and 9 of the Insolvency & Bankruptcy Code, 2016, outline the procedure for

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**Reasoning:** The Bench was satisfied that the application filed by the Operational Creditor was in

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**Interpretation:** Sections 8 and 9 of the IBC are interpreted to ensure that operational

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**Application:** The court found that the application included the necessary demand notice and

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** ABN Trade Link…
- **Respondents:** Sonarch Internatio…

## Timeline

- **2013-04-01 — Supply of…**: The Petitioner supplied vitrified tiles, MS…
- **2015-03-31 — End of Supply…**: The period during which the Petitioner…

## 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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