# In the matter of UM Autocomp Pvt. Ltd. IB No. 282-ND-2021

> NCLT judgment dated 17 Feb 2022. Citation: TCN-2022-NCLT-04089. The present petition was filed by M/s D.R. International Pvt. Ltd. (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 17 Feb 2022
- **Citation:** TCN-2022-NCLT-04089
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/um-autocomp-pvt-ltd-ib-no-282-nd-2021-6860abf8

## Summary

### Background

The present petition was filed by M/s D.R. International Pvt. Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. UM Autocomp Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor had approached them for the supply of various goods on credit, with agreed terms of payment including a 60-day credit period and 24% interest on overdue payments. The Operational Creditor subsequently raised invoices totaling Rs. 3,05,70,968/- for goods supplied and received by the Corporate Debtor. Despite partial payments of Rs.

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## Facts

M/s D.R. International Pvt. Ltd., the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. UM Autocomp Pvt. Ltd., the Corporate Debtor. The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to an alleged default in payment for goods supplied. The Corporate Debtor had approached the Operational Creditor for the supply of Polycarbonates (PC), Acrylonitrile Butadiene Styrene (ABS), (ACRYLIC), and (PMM) on a credit basis for its units in Saharanpur and Haridwar.

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## Issues and analysis

### Issue 1: Whether there was a valid and legally binding settlement between the Operational Creditor and the…

**Ratio:** A purported settlement agreement is not legally binding if its authenticity is disputed…

**Reasoning:** The court reasoned that the Corporate Debtor's claim of a settlement for a lesser amount…

**Interpretation:** The court interpreted the lack of a formal reply to the Section 8 demand notice…

**Application:** Applying this interpretation, the court found that the Corporate Debtor's…

## Parties

- **Judges:** Ramalingam…; Narender Kumar…
- **Advocates:** For Petit…; Rishi Sood,…; +1 more

## Timeline

- **August 10, 2018 — Invoice…**: Operational Creditor raised various…
- **July 24, 2020 — Last Invoic…**: Operational Creditor raised various invoices, ending on this date, for a total sum of Rs.…

## 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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