# In the matter of AMBIKA DECOR PRIVATE LIMITED

> NCLT judgment dated 2025-05-13. Citation: TCN-2025-NCLT-00075. The case involves an application filed by Shubhangi Papers Private Limited (Operational…

- **Court:** NCLT
- **Order date:** 13 May 2025
- **Citation:** TCN-2025-NCLT-00075
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ambika-decor-private-limited-6fceb7a1

## Summary

### Background

The case involves an application filed by Shubhangi Papers Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Ambika Décor Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP) due to a default in payment of outstanding dues amounting to Rs. 3,41,81,116/-. The Operational Creditor claimed that the Corporate Debtor approached them for purchasing wrapping paper, chemicals, and Kraft paper rolls, and defaulted on payments for invoices raised between 12.08.2019 and 16.06.2021. The Corporate Debtor denied the claim, alleging false invoices and disputing the supply of materials.

## Facts

Shubhangi Papers Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Ambika Décor Private Limited (Corporate Debtor) for defaulting on payments. The Operational Creditor claimed that the Corporate Debtor approached them to purchase wrapping paper, chemicals, and Kraft paper rolls. Invoices were raised between 12.08.2019 and 16.06.2021, totaling Rs. 2,01,79,627/-. The total amount in default, including interest calculated at 30% per annum, was Rs. 3,41,81,116/- as of 27.08.2022. The Corporate Debtor allegedly stopped making payments from 23.06.2022 onwards. The Operational Creditor issued a demand notice on 05.09.2022, which was delivered on 12.09.2022, but the Corporate Debtor neither

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the IBC is …

**Ratio:** The application is maintainable and compliant if it adheres to the requirements of Form 5

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**Reasoning:** The Tribunal found that the application was filed in Form 5 under Rule 6 of the IBC

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**Interpretation:** The legal principle is that an application under Section 9 of the IBC must be

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**Application:** In this case, the Tribunal determined that the Operational Creditor had met all

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## Parties

- **Judges:** SHAMMI…; SANJEEV S…
- **Appellants:** M/s Shubhangi…
- **Respondents:** Ambika Décor…; M/s Ambika Décor…
- **Advocates:** Saumitra Chaturved…; Nilesh P Ud…; +1 more

## Timeline

- **2019-08-12 — Invoices…**: Operational Creditor started raising…
- **2021-06-16 — Invoices…**: Operational Creditor raised invoices on…

## 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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