# In the matter of INDIAN REFRIGERATOR COMPANY LIMITED

> NCLT judgment dated 2024-08-14. Citation: TCN-2024-NCLT-00796. Silveroak Home Appliances Pvt. Ltd. filed a Company Petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 14 Aug 2024
- **Citation:** TCN-2024-NCLT-00796
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indian-refrigerator-company-limited-3eaf9e8c

## Summary

### Background

Silveroak Home Appliances Pvt. Ltd. filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Indian Refrigerator Company Ltd. The operational debt claimed was Rs.3,03,09,574/- (principal+interest). A demand notice dated 06.11.2023 was sent to the Corporate Debtor, who replied seeking time to make payment. The Operational Creditor claimed to have supplied goods between 8th April 2021 and 3rd January 2022, for which payments were not made.

## Facts

Silveroak Home Appliances Pvt. Ltd. (Operational Creditor) supplied goods to Indian Refrigerator Company Ltd. (Corporate Debtor) between April 8, 2021, and January 3, 2022. The Corporate Debtor failed to make payments for these goods, leading to an operational debt of Rs. 3,03,09,574/-. The Operational Creditor sent a demand notice dated November 6, 2023, which was delivered to the Corporate Debtor on November 23 and 24, 2023, via email and speed post, respectively. The Corporate Debtor replied on November 29, 2023, acknowledging the debt and seeking time to make the payment. The Corporate Debtor initially disputed the quality of goods but later accepted that the issues were rectified. The Corporate Debtor proposed a settlement and requested time to clear the debt in

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is unable to pay its debt, leading to a default under the Insolvency …

**Ratio:** The inability of the Corporate Debtor to pay its debt, coupled with an admission of the

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**Reasoning:** The NCLT observed that the Corporate Debtor had acknowledged the debt in its reply to the

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**Interpretation:** The admission of debt by the Corporate Debtor is considered a crucial factor in

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**Application:** The Corporate Debtor's acknowledgment of the debt and request for time to make

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Silveroak Home…
- **Respondents:** Indian Refrigerato…
- **Advocates:** CS Rishabh…; Harsh Kes…

## Timeline

- **2021-04-08 — Supply of Good…**: Operational Creditor starts…
- **2022-01-03 — Supply of Goo…**: Operational Creditor completes the…

## 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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