# In the matter of SPG Multi Trade Private Limited C.P. (IB)No.3419-NCLT-MB-2019

> NCLT judgment dated 2020-03-03. Citation: TCN-2020-NCLT-01701. The case involves an application filed by Esszee Manufacturing Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 3 Mar 2020
- **Citation:** TCN-2020-NCLT-01701
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/spg-multi-trade-private-limited-cp-ibno3419-nclt-mb-2019-4241d0d2

## Summary

### Background

The case involves an application filed by Esszee Manufacturing Private Limited, the Operational Creditor, against SPG Multi Trade Private Limited, the Corporate Debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a total default of Rs.77,32,67,231/-, including a principal amount of Rs.71,14,56,387/- and interest of Rs.6,18,10,844/- at 21% p.a. The Corporate Debtor allegedly failed to make payments for the supply of fabrics, raw cotton bales, plates, and iron steel products.

## Facts

Esszee Manufacturing Private Limited (Operational Creditor) filed an application against SPG Multi Trade Private Limited (Corporate Debtor) under Section 9 of the I&B Code, 2016, seeking initiation of CIRP. The Operational Creditor claimed a total default of Rs.77,32,67,231/-, including a principal amount of Rs.71,14,56,387/- and interest of Rs.6,18,10,844/- at 21% p.a. The Operational Creditor supplied fabrics, raw cotton bales, plates, and iron steel products to the Corporate Debtor between 26.03.2018 and 07.12.2018. The last invoice was raised on 07.12.2018, with payment due on 10.12.2018, which is considered the date of default. The Corporate Debtor made an irregular payment, with the last payment of Rs.5,00,000/- made on 31.01.2019. The Operational Creditor

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the I&B Code, 2016, for initiating the Corporate …

**Ratio:** Section 9 of the I&B Code, 2016, allows an operational creditor to initiate CIRP

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**Reasoning:** The court observed that the application was complete and filed under proper form. The

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**Interpretation:** Section 9 provides the framework for operational creditors to initiate CIRP,

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**Application:** The court found that the application was complete and met the requirements of

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## Parties

- **Judges:** Mr Bhaskara…; Mr Rajesh…
- **Appellants:** Esszee Manufacturi…
- **Respondents:** SPG Multi Trade…

## Timeline

- **2018-03-26 — Invoice Perio…**: Invoices raised for…
- **2018-12-07 — Last Invoice…**: The applicant raised…

## 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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