# In the matter of Epitome Petrochemical Private Limited C.P. (IB) No. 958-KB-2019

> NCLT judgment dated 2022-04-05. Citation: TCN-2022-NCLT-03360. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 5 Apr 2022
- **Citation:** TCN-2022-NCLT-03360
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/epitome-petrochemical-private-limited-cp-ib-no-958-kb-2019-aa49d087

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by M/s Gypsy Logistics Private Limited (Operational Creditor) against M/s Epitome Petrochemical Private Limited (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for transportation services provided. The Corporate Debtor contested the claim, asserting that it had already paid most of the outstanding amount, leaving only a small sum of Rs. 50,000 outstanding.

## Facts

M/s Gypsy Logistics Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Epitome Petrochemical Private Limited (Corporate Debtor) for unpaid operational debt related to transportation services. The Operational Creditor claimed that the Corporate Debtor defaulted on payments, with the debt dating back to May 10, 2016. The Operational Creditor sent a demand notice on February 5, 2019. The Corporate Debtor, in its reply, claimed that it had paid most of the outstanding amount, leaving only Rs. 50,000 outstanding. The Operational Creditor submitted bank statements and ledger sheets to support its claim. The Corporate Debtor argued that there was a pre-existing dispute and that the Operational

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in payment of the operational debt as defined …

**Ratio:** Section 3(12) of the IBC defines 'default' as non-payment of debt when whole or any part

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**Reasoning:** The court examined the documents and pleadings and found that the Corporate Debtor had

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**Interpretation:** The definition of 'default' under Section 3(12) is interpreted to mean that any

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**Application:** The court applied the definition of 'default' to the facts of the case and

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Gypsy Logistics…
- **Respondents:** Epitome Petrochemi…

## Timeline

- **2016-05-10 — Date of D…**: The date from which the debts became due,…
- **2016-10-20 — Last Payment…**: The date the last payment was received by the Operational Creditor from the Corporate…

## 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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