# In the matter of 5 Core Acoustics Private Limited IB-468-(ND)-2020

> NCLT judgment dated 2022-11-16. Citation: TCN-2022-NCLT-00436. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Nov 2022
- **Citation:** TCN-2022-NCLT-00436
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/5-core-acoustics-private-limited-ib-468-nd-2020-d819b3b6

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/S Tri-Wall Pak Private Limited (Operational Creditor) against M/s 5 Core Acoustics Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The applicant claimed that the corporate debtor defaulted in payment of operational debt. The corporate debtor had placed purchase orders for corrugated boxes with the applicant since April 2017. The applicant raised invoices from February 2019 to November 2019, totaling Rs. 25,56,641.40, which were duly received and acknowledged by the corporate debtor. Despite reminders, the corporate debtor failed to clear the outstanding dues.

## Facts

M/S Tri-Wall Pak Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s 5 Core Acoustics Private Limited (Corporate Debtor). The Corporate Debtor had placed purchase orders for corrugated boxes with the Operational Creditor since April 2017. The Operational Creditor raised invoices from February 2019 to November 2019, totaling Rs. 25,56,641.40, which were duly received and acknowledged by the Corporate Debtor. The Corporate Debtor made a partial payment of Rs. 22,51,892 towards the invoices. The Operational Creditor sent a demand notice dated 05.11.2019 demanding payment of the unpaid operational debt of Rs. 3,79,342.40. The Corporate Debtor failed to reply to the notice. The application was

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## Issues and analysis

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

**Ratio:** Section 9(5) of the Insolvency and Bankruptcy Code, 2016, allows for the admission of an

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**Reasoning:** The Corporate Debtor had placed purchase orders and received invoices from the

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**Interpretation:** The legal principle is that if a corporate debtor fails to pay an operational

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**Application:** The Corporate Debtor's failure to pay the outstanding amount of Rs.

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## Parties

- **Judges:** SH. P.S.N.…; SH. RAHUL…
- **Appellants:** M/s Tri-Wall Pak…
- **Respondents:** M/S 5 CORE…

## Timeline

- **2017-04-01 — Purchase…**: Corporate Debtor placed purchase orders for corrugated boxes with the Applicant since…
- **2019-02-01 — Invoices…**: Applicant raised invoices from February 2019 to…

## 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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