# In the matter of Azam Rubber Products Private Limited CP (IB) NO.92-ALD-2022

> NCLT judgment dated 2023-04-13. Citation: TCN-2023-NCLT-03814. The Operational Creditor, Mr. Om Prakash, proprietor of Khandelwal Packing Corporation, filed…

- **Court:** NCLT
- **Order date:** 13 Apr 2023
- **Citation:** TCN-2023-NCLT-03814
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/azam-rubber-products-private-limited-cp-ib-no92-ald-2022-b7057ee7

## Summary

### Background

The Operational Creditor, Mr. Om Prakash, proprietor of Khandelwal Packing Corporation, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, read with Rule 6 of the IB (Adjudicating Authority) Rules, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/S Azam Rubber Products Private Limited. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for 52 invoices totaling Rs. 1,37,48,248/- for goods supplied. Despite repeated requests and admissions of dues by the Corporate Debtor, no payments were made. The Corporate Debtor claimed a pre-existing dispute regarding the quality of goods, which the Operational Creditor denied.

## Facts

Mr. Om Prakash, the Operational Creditor and proprietor of Khandelwal Packing Corporation, supplied goods to M/S Azam Rubber Products Private Limited, the Corporate Debtor. The Corporate Debtor failed to pay Rs. 1,37,48,248/- against 52 invoices. The first invoice was due on December 5, 2021, and the last on June 8, 2022. The Operational Creditor sent emails on June 20 and 21, 2022, demanding payment. The Corporate Debtor admitted the dues in an email dated June 22, 2022, but requested more time due to financial difficulties. Further emails were exchanged on June 24, 2022, with the Corporate Debtor reiterating its financial crisis. The Operational Creditor sent a demand notice dated August 9, 2022, which was received by the Corporate Debtor on August 24, 2022. The

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## Issues and analysis

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

**Ratio:** Section 9(5) of the I&B Code, 2016 specifies the conditions for admitting an

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**Reasoning:** The NCLT found that the application was complete, the operational debt remained unpaid,

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**Interpretation:** Section 9(5) of the I&B Code mandates that the Adjudicating Authority must

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**Application:** The NCLT applied the provisions of Section 9(5) to the facts of the case,

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## Parties

- **Judges:** Sh. Praveen…; Sh. Ashish…
- **Appellants:** Om Pra…
- **Respondents:** M/S AZAM RUBBER…

## Timeline

- **2021-11-28 — First Invoice…**: First pending invoice being due…
- **2021-12-05 — First Invoi…**: First pending invoice…

## 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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