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

> NCLT judgment dated 2023-01-24. Citation: TCN-2023-NCLT-04936. Creative Metal Industries filed a Company Petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 24 Jan 2023
- **Citation:** TCN-2023-NCLT-04936
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/chinnar-projects-pvt-ltd-cp-4632-ib-mb-2019-69f44968

## Summary

### Background

Creative Metal Industries filed a Company Petition 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 for an operational debt of Rs. 19,84,747. The petitioner claimed that the respondent failed to make payments for goods supplied against a purchase order.

## Facts

In May 2019, M/s Chinnar Projects Pvt Ltd (the Respondent) approached Creative Metal Industries (the Petitioner) and placed a purchase order dated 2019-05-30. Against this purchase order, the Petitioner supplied goods to the Respondent, supported by tax invoices dated 2019-06-01. The total outstanding amount for the supplied goods was Rs. 20,84,747. 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, including penalties for delays, but failed to do so. A demand notice was issued on 2019-08-27. The Respondent deposited Rs. 1,00,000 in the Petitioner's account, leaving Rs. 19,84,747 outstanding. A further demand notice was issued on

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## Issues and analysis

### Issue 1: Whether the Petitioner, Creative Metal Industries, has successfully demonstrated the existence of a …

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

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

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**Interpretation:** Section 9 of the IBC is interpreted to allow for the initiation of CIRP when an

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**Application:** The court applied the ratio to the facts of the case, noting that the

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## Parties

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

## Timeline

- **2019-05-30 — Purchase…**: The Respondent placed a…
- **2019-06-01 — Tax Invo…**: The Petitioner supplied goods to the Respondent against the purchase order, supported by…

## 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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