# In the matter of Atharva Polymers Private Limited C.P. (IB) No. 179-IBC-MB-2022

> NCLT judgment dated 2023-05-12. Citation: TCN-2023-NCLT-03391. The case involves a Company Petition filed by M/s. Attitude Lifescience Products Private…

- **Court:** NCLT
- **Order date:** 12 May 2023
- **Citation:** TCN-2023-NCLT-03391
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/atharva-polymers-private-limited-cp-ib-no-179-ibc-mb-2022-5bda5889

## Summary

### Background

The case involves a Company Petition filed by M/s. Attitude Lifescience Products Private Limited (Operational Creditor/Petitioner) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Atharva Polymers Private Limited (Corporate Debtor). The petitioner alleges that the corporate debtor defaulted on payments amounting to Rs. 1,21,82,850/- inclusive of interest @24% p.a. as of 30.09.2020, for goods supplied between 01.06.2018 and 01.04.2019.

## Facts

M/s. Attitude Lifescience Products Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Atharva Polymers Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments amounting to Rs. 1,21,82,850/- inclusive of interest @24% p.a. as of 30.09.2020. The debt arose from the supply of plastic granules (goods) by the Operational Creditor to the Corporate Debtor between 01.06.2018 and 01.04.2019. The total value of goods supplied was Rs. 75,20,277.97. The invoices stipulated an interest of 24% p.a. if payments were not made within 45 days of issuance. The Operational Creditor issued a

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of an operational debt and default …

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

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**Reasoning:** The court found that the Operational Creditor had provided sufficient evidence, including

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**Interpretation:** The court interpreted Section 9 to mean that if an operational creditor can

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**Application:** The court applied the ratio to the facts by noting that the invoices and demand

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## Parties

- **Judges:** Kuldip Kumar…; Madhu S…
- **Appellants:** M/s. Attitude…
- **Respondents:** M/s. Atharva…

## Timeline

- **2018-06-01 — Goods Sup…**: Operational Creditor supplied…
- **2019-04-01 — Goods Sup…**: Operational Creditor supplied…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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