# In the matter of Supreet Chemicals Private Limited CP (IB) No. 523-9-NCLT-AHM-2019

> NCLT judgment dated 2021-03-23. Citation: TCN-2021-NCLT-02607. Mahadev Trading Company, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 23 Mar 2021
- **Citation:** TCN-2021-NCLT-02607
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/supreet-chemicals-private-limited-cp-ib-no-523-9-nclt-ahm-2019-5cda6bf1

## Summary

### Background

Mahadev Trading Company, an operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Supreet Chemicals Pvt. Ltd, the corporate debtor, for a default amount of Rs. 2,28,72,166/- with interest, dating back to 22.07.2016. The operational creditor claimed to have supplied chemical substances to the corporate debtor based on their demands, raising 24 invoices between 06.07.2016 and 23.10.2016. The corporate debtor allegedly failed to make full payment, leading to the application for CIRP.

## Facts

Mahadev Trading Company (operational creditor) claimed that Supreet Chemicals Pvt Ltd (corporate debtor) defaulted on payments for chemical substances supplied based on 24 invoices raised between 06.07.2016 and 23.10.2016, totaling Rs. 2,28,72,166/-. The date of default was 22.07.2016. The corporate debtor made a partial payment of Rs. 9,65,130/- against invoice no. 30. The operational creditor issued a demand notice on 15.02.2019, delivered on 25.02.2019. The corporate debtor denied any outstanding dues, claiming the invoices were bogus and that all payments had been made. The corporate debtor also stated that the operational creditor had not specified who contacted them on behalf of the corporate debtor. The operational creditor claimed the corporate debtor

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## Issues and analysis

### Issue 1: Whether the operational creditor has sufficiently proven the existence of a debt and default by the …

**Ratio:** The burden of proving the existence of a debt and default lies with the operational

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**Reasoning:** The NCLT found that the operational creditor failed to produce sufficient evidence to

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**Interpretation:** Section 9 of the IBC requires the operational creditor to demonstrate a clear

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**Application:** In this case, the operational creditor's failure to provide delivery challans

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Mahadev Tra…
- **Respondents:** Supreet Chemicals…

## Timeline

- **2016-07-06 — First Invoi…**: First invoice raised by the operational…
- **2016-07-22 — Date of D…**: The date on which the corporate debtor…

## 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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