# In the matter of Sri Chandra Moulishvar Spinning Mills Private Limited CP-558-(IB)-CB-2018

> NCLT judgment dated 2018-06-07. Citation: TCN-2018-NCLT-01311. The case involves a company petition filed by Mr. E. Karthick Shanmuga Nathan, the sole…

- **Court:** NCLT
- **Order date:** 7 Jun 2018
- **Citation:** TCN-2018-NCLT-01311
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-chandra-moulishvar-spinning-mills-private-limited-cp-558-ib-cb-2018-68bb8c87

## Summary

### Background

The case involves a company petition filed by Mr. E. Karthick Shanmuga Nathan, the sole proprietor of M/s. Sri Karthic Polypacks (Operational Creditor), against M/s. Sri Chandra Moulishvar Spinning Mills Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for packing materials supplied over time. Despite requests and reminders, the Corporate Debtor failed to pay the outstanding debt of Rs. 7,17,626/-, although a part payment of Rs. 50,000/- was made. The Operational Creditor issued a demand notice dated 05.04.2018 as per the provisions under section 8 of the IB Code 2016 r/w Rule 5 of the IB Rules 2016.

## Facts

M/s. Sri Karthic Polypacks, the Operational Creditor, filed a company petition against M/s. Sri Chandra Moulishvar Spinning Mills Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor supplied packing materials to the Corporate Debtor based on their requirements. The materials were supplied on credit against specific invoices. The Corporate Debtor defaulted on payments, leaving an outstanding debt of Rs. 7,17,626/-. A part payment of Rs. 50,000/- was made. The Operational Creditor sent a demand notice dated 05.04.2018, calling for payment of the outstanding dues, including principal and interest at 24% p.a. from 21.06.2017. The Corporate Debtor did not file any counter to the petition. The

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has complied with the requirements of the I&B Code, 2016 for …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency

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**Reasoning:** The Adjudicating Authority considered the submissions of the Counsel for the petitioner

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**Interpretation:** The legal interpretation is that the operational creditor must demonstrate that

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**Application:** The Operational Creditor presented evidence, including invoices and a demand

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** M/s. Sri Karthic…
- **Respondents:** M/s. Sri Chandra…

## Timeline

- **2018-04-05 — Demand N…**: The Operational Creditor sent a Demand Notice to the Corporate Debtor as per Section 8 of…
- **2018-06-07 — Order Del…**: The Adjudicating Authority delivered the order admitting the petition and initiating the…

## 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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