# In the matter of Aditya Chemtec Pvt. Ltd. IB -280 -ND-2020

> NCLT judgment dated 2023-03-28. Citation: TCN-2023-NCLT-04034. S.L. Plastics filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 28 Mar 2023
- **Citation:** TCN-2023-NCLT-04034
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aditya-chemtec-pvt-ltd-ib-280-nd-2020-cac2fffe

## Summary

### Background

S.L. Plastics filed an application 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, to initiate Corporate Insolvency Resolution Process (CIRP) against Aditya Chemtec Private Limited. The application was filed due to the corporate debtor's failure to pay for an invoice issued on June 1, 2017, amounting to Rs. 13,54,300, of which Rs. 7,02,800 remained outstanding for goods supplied, along with an interest of Rs. 2,58,207 at 18% calculated from the due date of July 1, 2017, to July 16, 2019.

## Facts

S.L. Plastics, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Aditya Chemtec Private Limited, the corporate debtor. The application was based on the corporate debtor's failure to pay an outstanding amount of Rs. 7,02,800 out of an invoice of Rs. 13,54,300 issued on June 1, 2017, for goods supplied, along with interest. The corporate debtor claimed a pre-existing dispute regarding the quality of the goods, stating that more than 50% of the goods were damaged. The operational creditor raised a demand notice dated 16.07.2019 under Section 8 of the Code. The corporate debtor argued that the threshold limit for initiating insolvency proceedings had increased to Rs. 1 Crore, but the

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

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

…

**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had defaulted in payment of

…

**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

…

**Application:** The Corporate Debtor failed to make payment for the goods supplied by the

…

## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** S.L. Pla…
- **Respondents:** Aditya Chemtec…

## Timeline

- **2017-06-01 — Invoice I…**: S.L. Plastics issued an invoice to…
- **2017-07-01 — Invoice Du…**: The due date for the…

## 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-division-bench-court-i-chenn/aditya-chemtec-pvt-ltd-ib-280-nd-2020-cac2fffe