# In the matter of Balaji Fiber Reinforce Pvt. Ltd. CP (IB) 249 of 2020

> NCLT judgment dated 2022-05-11. Citation: TCN-2022-NCLT-02785. The application was filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) by Westin…

- **Court:** NCLT
- **Order date:** 11 May 2022
- **Citation:** TCN-2022-NCLT-02785
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/balaji-fiber-reinforce-pvt-ltd-cp-ib-249-of-2020-a67f7f8f

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) by Westin Resins and Polymers Private Limited, the Operational Creditor, to initiate the Corporate Insolvency Resolution Process (CIRP) against Balaji Fiber Reinforce Private Limited, the Corporate Debtor, due to a default in paying an operational debt of Rs. 3,24,12,207. The Operational Creditor claimed to have sold and supplied resin to the Corporate Debtor between 24.11.2017 and 13.01.2018, with the Corporate Debtor failing to pay the outstanding amount by 17.07.2019. A demand notice was sent under Section 8 of the IBC after the Corporate Debtor admitted to owing a certain sum of money but failed to pay by 19.10.2019.

## Facts

Westin Resins and Polymers Private Limited (Operational Creditor) filed an application under Section 9 of the IBC to initiate CIRP against Balaji Fiber Reinforce Pvt. Ltd. (Corporate Debtor) due to a default in paying an operational debt of Rs. 3,24,12,207. The Operational Creditor sold and supplied resin to the Corporate Debtor between 24.11.2017 and 13.01.2018. The Corporate Debtor failed to pay the outstanding amount by 17.07.2019. The Corporate Debtor sent an email admitting that certain money remains unpaid. A demand notice was sent under Section 8 of the IBC, but the Corporate Debtor did not pay the debt or point out any pre-existing dispute. The Corporate Debtor raised technical defenses, claiming the goods supplied were of inferior quality and that there was a

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the I.B. Code filed by the Operational Creditor is …

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

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Westin Resins &…
- **Respondents:** Balaji Fiber…

## Timeline

- **2017-11-24 — Start of Resi…**: Operational Creditor started…
- **2018-01-13 — End of Resin…**: Operational Creditor stopped…

## 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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