# In the matter of Compack Enterprise India Private Limited Company Petition (IB) No. 806-ND-2020

> NCLT judgment dated 2022-06-01. Citation: TCN-2022-NCLT-02506. This case involves a Section 9 application under the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 1 Jun 2022
- **Citation:** TCN-2022-NCLT-02506
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/compack-enterprise-india-private-limited-company-petition-ib-no-806-nd-2020-0a0cf685

## Summary

### Background

This case involves a Section 9 application under the Insolvency and Bankruptcy Code, 2016, filed by Omni Distributors (Operational Creditor) against Compack Enterprise India Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a total debt of Rs. 34,72,606/-, including principal and interest, arising from the supply of Metalized Polyester Films and Thermal Lamination Films. The Corporate Debtor contested the application, alleging disputes regarding the quality of goods supplied, forgery of documents, and the existence of a prior settlement. The Operational Creditor claimed that the Corporate Debtor committed forgery with illicit intention to attain financial gain, used counterfeit

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## Facts

Omni Distributors (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Compack Enterprise India Private Limited (Corporate Debtor), claiming a debt of Rs. 34,72,606/-. The debt arose from the supply of Metalized Polyester Films and Thermal Lamination Films. The Operational Creditor issued invoices between 02.02.2019 and 19.04.2019. The Corporate Debtor defaulted on payments, leading the Operational Creditor to issue a demand notice in Form 3 under Section 8 of the IBC, 2016. The Corporate Debtor replied to the demand notice, claiming disputes regarding the quality of goods. The Corporate Debtor sent a cheque for Rs. 4,35,189/- along with its reply, which the Operational Creditor returned. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC, 2016, is maintainable given the dispute raised …

**Ratio:** Section 9(5) of the IBC, 2016, stipulates that the Adjudicating Authority shall admit the

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**Reasoning:** The court observed that the documents available on record showed a dispute regarding the

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**Interpretation:** The existence of a genuine dispute prior to the issuance of the demand notice

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**Application:** In this case, the court found that the Corporate Debtor had raised a dispute

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## Parties

- **Judges:** Sh. Abni Ranjan…; SH. L. N.…
- **Appellants:** OMNI DISTRI…
- **Respondents:** M/S COMPACK…

## Timeline

- **2019-02-02 — Invoice…**: Operational Creditor raised invoices…
- **2019-04-19 — Last Date of…**: The last date of raising…

## 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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