# In the matter of SPML Infra Ltd. IB-3210(ND)-2019

> NCLT judgment dated 2021-03-05. Citation: TCN-2021-NCLT-02801. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 5 Mar 2021
- **Citation:** TCN-2021-NCLT-02801
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/spml-infra-ltd-ib-3210nd-2019-9ac337c5

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 by UPI Polymers Pvt Ltd (Operational Creditor) against SPML Infra Ltd (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP) due to non-payment of outstanding debt. The Operational Creditor claimed that the Corporate Debtor owed Rs.2,67,41,116.96/- (invoices) plus Rs.1,73,91,761.95/- (interest amount). The Corporate Debtor argued that there was a pre-existing dispute regarding the quality of material supplied, the claim was time-barred, and the Operational Creditor approached with unclean hands.

## Facts

UPI Polymers Pvt Ltd (Operational Creditor) claimed that SPML Infra Ltd (Corporate Debtor) owed them Rs.2,67,41,116.96/- (invoices) plus Rs.1,73,91,761.95/- (interest amount) for the supply of HDPE/MDPE Pipes. The Operational Creditor stated that they had supplied materials to the Corporate Debtor from 2015-08-01 to 2015-12-24, based on three purchase orders. The Operational Creditor sent a legal notice on 2018-04-06, demanding the outstanding amount. Subsequently, a demand notice in Form 3 & 4 was sent on 2019-08-13. The Corporate Debtor replied on 2019-10-01, citing a commercial relationship and seeking reconciliation of accounts. The Corporate Debtor issued cheques on 2016-08-09, but two of them bounced. Part payments were made by the Corporate Debtor on

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the IBC, 2016 by the Operational Creditor is …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The court found that the Operational Creditor had fulfilled all the legal requirements

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** The court applied the provisions of Section 9 to the facts of the case and

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## Parties

- **Judges:** Ch. Mohd Sharief…; Narender Kumar…
- **Appellants:** UPI POLYMERS PVT…
- **Respondents:** SPML Infr…
- **Advocates:** Somanadri…; Pradeep…

## Timeline

- **2015-08-01 — Supply of Ma…**: Operational Creditor supplied materials to the Corporate Debtor from 2015-08-01 to…
- **2018-04-06 — Legal No…**: Operational Creditor sent a legal…

## 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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