# In the matter of Tuljai Industrial Products Private Limited C.P. (IB) 2248-MB-2019

> NCLT judgment dated 2019-11-11. Citation: TCN-2019-NCLT-00636. Berger Paints India Limited filed a Company Petition under Section 8 & 9 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 11 Nov 2019
- **Citation:** TCN-2019-NCLT-00636
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tuljai-industrial-products-private-limited-cp-ib-2248-mb-2019-653f9c19

## Summary

### Background

Berger Paints India Limited filed a Company Petition under Section 8 & 9 of the Insolvency & Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Tuljai Industrial Products Private Limited. The petition alleges that the Corporate Debtor defaulted on a payment of ₹16,78,747/-, including interest at 18% per annum, as of 24.05.2019. The Corporate Debtor had approached the Petitioner for the purchase of industrial paints and powder coatings, and the Petitioner supplied the materials and raised invoices, which were duly received and acknowledged without protest. A meeting on 14.11.2018 acknowledged an outstanding amount of ₹11,29,449. Despite requests, the Corporate Debtor failed to clear its dues, leading to

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## Facts

Berger Paints India Limited (the Petitioner) supplied industrial paints and powder coatings to Tuljai Industrial Products Private Limited (the Corporate Debtor). The Corporate Debtor failed to make payments for the supplied goods, resulting in an outstanding amount of ₹16,78,747/- as of 24.05.2019, including interest at 18% per annum. The Petitioner issued a Demand Notice on 15.03.2019, which was returned undelivered but later emailed to the Corporate Debtor on 10.04.2018. The Corporate Debtor acknowledged an outstanding amount of ₹11,29,449 in a meeting held on 14.11.2018. The Petitioner filed a Company Petition under Section 8 & 9 of the IBC, 2016, seeking to initiate CIRP against the Corporate Debtor. The petition was served on the Corporate Debtor but returned

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making …

**Ratio:** A default occurs when a debt is due and

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**Reasoning:** The court noted that the Corporate Debtor had failed to make payments for the invoices

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**Interpretation:** The legal principle of default is interpreted as the failure to pay a debt when

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**Application:** The court applied this principle to the facts, finding that the Corporate

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** Berger Paints…
- **Respondents:** Tuljai Industrial…
- **Advocates:** Japul…

## Timeline

- **2018-11-14 — Joint Me…**: A meeting was held between the representative of the Petitioner and Corporate Debtor,…
- **2019-03-15 — Demand Notice…**: The Petitioner issued a Demand Notice in Form 3 & Form 4 under Section 8 of the I&B Code,…

## 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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