# In the matter of VCRM Petrochemicals Ltd. (IB)-718(ND)-2019

> NCLT judgment dated 2019-09-27. Citation: TCN-2019-NCLT-01201. The petition was filed for initiating the Corporate Insolvency Resolution Process against the…

- **Court:** NCLT
- **Order date:** 27 Sept 2019
- **Citation:** TCN-2019-NCLT-01201
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vcrm-petrochemicals-ltd-ib-718nd-2019-a40160e4

## Summary

### Background

The petition was filed for initiating the Corporate Insolvency Resolution Process against the Corporate Debtor due to its inability to liquidate outstanding dues. The Operational Creditor, GP Petroleum Ltd., had business dealings with the Corporate Debtor, VCRM Petrochemicals Ltd., since 21.03.2015, supplying Chandri Ink Process. The Corporate Debtor defaulted on payments amounting to Rs. 66,71,720/-. The Operational Creditor issued a demand notice dated 28.04.2018 under Section 8 of the IBC, which was not replied to, leading to the filing of the Section 9 petition.

## Facts

GP Petroleum Ltd., the Operational Creditor, is a listed entity dealing in industrial and automotive oil and lubricants. They had business dealings with VCRM Petrochemicals Ltd., the Corporate Debtor, since 21.03.2015, supplying Chandri Ink Process. The Corporate Debtor defaulted on payments amounting to Rs. 66,71,720/-. GP Petroleum Ltd. issued a demand notice on 28.04.2018 under Section 8 of the IBC, which went unanswered. Consequently, GP Petroleum Ltd. filed a petition under Section 9 of the IBC to initiate the Corporate Insolvency Resolution Process. VCRM Petrochemicals Ltd. failed to appear in the proceedings despite being served notice, leading the court to proceed ex parte. The Operational Creditor claimed interest @ 24% p.a on account of delay in payment.

## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor for initiating the Corporate Insolvency …

**Ratio:** The absence of any controversion of the Operational Creditor's averments and the lack of

…

**Reasoning:** The court reasoned that since the Operational Creditor's claims were not disputed and

…

**Interpretation:** The interpretation of Section 9 of the IBC allows for the admission of a

…

**Application:** The ratio and reasoning were applied to the facts of the case, where the

…

## Parties

- **Judges:** Ina Mal…; L. N. G…
- **Appellants:** GP Petroleu…
- **Respondents:** VCRM Petrochemical…

## Timeline

- **2015-03-21 — Business Deali…**: GP Petroleum Ltd. and VCRM…
- **2018-04-28 — Demand Notice…**: GP Petroleum Ltd. issued a demand notice to VCRM Petrochemicals Ltd. under Section 8 of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/vcrm-petrochemicals-ltd-ib-718nd-2019-a40160e4