# In the matter of Chinnar Projects Pvt. Ltd. C.P. 4632-IB-MB-2019

> NCLT judgment dated 2023-01-24. Citation: TCN-2023-NCLT-04930. The case involves a Company Petition filed by Creative Metal Industries (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 24 Jan 2023
- **Citation:** TCN-2023-NCLT-04930
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/chinnar-projects-pvt-ltd-cp-4632-ib-mb-2019-5e264a07

## Summary

### Background

The case involves a Company Petition filed by Creative Metal Industries (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Chinnar Projects Pvt Ltd. (Corporate Debtor) for a resolution of operational debt amounting to Rs. 19,84,747/-. The Operational Creditor claimed that the Corporate Debtor failed to make payments for goods supplied.

## Facts

Creative Metal Industries (Operational Creditor) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Chinnar Projects Pvt Ltd. (Corporate Debtor) for non-payment of operational debt amounting to Rs. 19,84,747/-. The Corporate Debtor approached the Petitioner in May 2019 and placed a purchase order on 2019-05-30. The Petitioner supplied goods against the purchase order, issuing tax invoices dated 2019-06-01. The Respondent issued a cheque dated 2019-07-19 for Rs. 15,00,000/-, which was dishonored due to 'Funds Insufficient'. Email correspondences show the Respondent agreed to make payments and offered penalties for delays, including 1% penalty in an email dated 2019-08-23 and 2% interest as penalty later. The Respondent deposited Rs.

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has successfully demonstrated the existence of debt and default on …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency

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**Reasoning:** The court reasoned that the Petitioner had provided sufficient evidence, including

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**Interpretation:** The interpretation of Section 9 of the IBC requires the operational creditor to

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**Application:** The court applied the ratio to the facts by considering the documents submitted

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Creative Metal…
- **Respondents:** M/s Chinnar…

## Timeline

- **2019-05-01 — Respondent approached…**: The Respondent approached…
- **2019-05-30 — Purchase…**: Respondent placed purchase…

## 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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