# In the matter of Fiza Polymers Private Limited CP (IB) No. 1328-MB-IV-2022

> NCLT judgment dated 2023-04-12. Citation: TCN-2023-NCLT-03853. This case involves an application filed by Raj Petro Specialities Private Limited, the…

- **Court:** NCLT
- **Order date:** 12 Apr 2023
- **Citation:** TCN-2023-NCLT-03853
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fiza-polymers-private-limited-cp-ib-no-1328-mb-iv-2022-6c072359

## Summary

### Background

This case involves an application filed by Raj Petro Specialities Private Limited, the Operational Creditor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Fiza Polymers Private Limited, the Corporate Debtor. The Operational Creditor claimed a total outstanding amount of Rs. 2,63,04,980/-, including a principal amount of Rs. 2,49,72,016/- and interest of Rs. 13,32,964/-, calculated at 10% p.a. The Corporate Debtor allegedly defaulted on payments for base oils supplied by the Operational Creditor between February 23, 2022, and May 25, 2022. The Corporate Debtor did not respond to the demand notice or appear for the hearing.

## Facts

Raj Petro Specialities Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Fiza Polymers Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor owed Rs. 2,63,04,980/-, including principal and interest. The debt arose from the supply of base oils by the Operational Creditor to the Corporate Debtor between February 23, 2022, and May 25, 2022. The Corporate Debtor issued purchase orders for the goods. The Operational Creditor supplied the goods based on the Corporate Debtor's assurance of immediate payment upon delivery. The Corporate Debtor failed to make payments as agreed. A cheque issued by

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

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

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**Reasoning:** The court observed that the Operational Creditor had supplied goods to the Corporate

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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:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Raj Petro…
- **Respondents:** Fiza Polymers…

## Timeline

- **2022-02-17 — Purchase Order…**: Corporate Debtor issued purchase orders dated 17.02.2022, 22.02.2022, 03.03.2022 and…
- **2022-02-23 — Supply of…**: Operational Creditor supplied products to the Corporate Debtor between 23.02.2022 and…

## 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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