# 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-01693. The case originates from an application filed by Esszee Manufacturing Private Limited, the…

- **Court:** NCLT
- **Order date:** 3 Mar 2020
- **Citation:** TCN-2020-NCLT-01693
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/spg-multi-trade-private-limited-cp-ibno3419-nclt-mb-2019-73bbde0a

## Summary

### Background

The case originates from 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 and Bankruptcy Code (I&B 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. The Corporate Debtor allegedly defaulted on payments for fabrics, raw cotton bales, plates, and iron steel products supplied by the Operational Creditor between March and December 2018. The Operational Creditor issued a demand notice after the Corporate Debtor failed to make payments despite assurances and

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## Facts

Esszee Manufacturing Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against SPG Multi Trade Private Limited (Corporate Debtor) for initiating 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 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.

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** Section 9 of the I&B Code, 2016, outlines the requirements for an operational

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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 of the I&B Code requires the application to be complete in all

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**Application:** The court found that the application was complete and filed under proper form.

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## Parties

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

## Timeline

- **2018-03-26 — Invoice Perio…**: Start date of the period during which the…
- **2018-12-07 — Last Invoice…**: The Applicant raised the last…

## 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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