# In the matter of Sysco Industries Ltd. C.P. (I.B) No. 241-9-NCLT-AHM-2018

> NCLT judgment dated 2020-02-19. Citation: TCN-2020-NCLT-01890. M/s. Excel Tubes and Cones, the Operational Creditor, filed an I.B. Petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 19 Feb 2020
- **Citation:** TCN-2020-NCLT-01890
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sysco-industries-ltd-cp-ib-no-241-9-nclt-ahm-2018-10a54f72

## Summary

### Background

M/s. Excel Tubes and Cones, the Operational Creditor, filed an I.B. Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s. Sysco Industries Ltd., the Corporate Debtor, for non-payment of dues amounting to Rs. 27,00,247/- along with interest. The Corporate Debtor claimed a pre-existing dispute regarding the quality of goods supplied.

## Facts

M/s. Excel Tubes and Cones (Operational Creditor) filed an I.B. Petition against M/s. Sysco Industries Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor had defaulted on payments amounting to Rs. 27,00,247/- with an additional 18% interest per annum from the date of default, totaling Rs. 28,79,238.58. The Operational Creditor supplied paper tubes to the Corporate Debtor, who allegedly acknowledged the invoices but failed to make payments. The Corporate Debtor claimed a pre-existing dispute regarding the quality of the supplied goods, citing emails sent to the Operational Creditor. However, the Corporate Debtor also proposed a settlement acknowledging a debt liability of Rs.

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## Issues and analysis

### Issue 1: Whether the present I.B. Petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The Adjudicating Authority considered the facts presented and found that the present I.B.

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

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**Application:** The Adjudicating Authority applied Section 9 to the facts of the case, finding

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Excel Tubes &…
- **Respondents:** Sysco Industries…

## Timeline

- **2018-03-12 — Demand N…**: The Petitioner annexed copy of proof…
- **2018-03-13 — Notice from Re…**: The Respondent sent a notice through its company secretary, Mr. Rajeev Ranjan, stating…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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