# In the matter of KAGAZ PRINT-N-PACK INDIA PRIVATE LIMITED

> NCLT judgment dated 2022-02-23. Citation: TCN-2022-NCLT-04004. This is an application filed by the Operational Creditor, M/s Himanshu Paper Pvt. Ltd., seeking…

- **Court:** NCLT
- **Order date:** 23 Feb 2022
- **Citation:** TCN-2022-NCLT-04004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kagaz-print-n-pack-india-private-limited-074f0c0f

## Summary

### Background

This is an application filed by the Operational Creditor, M/s Himanshu Paper Pvt. Ltd., seeking to initiate Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor, M/s Kagaz Print N Pack India Pvt. Ltd., for the alleged default on the part of the Corporate Debtor in clearing the debt of Rs. 81,93,330/-. The Operational Creditor is in the business of trading Kraft Paper Reels, and the Corporate Debtor used to give purchase orders for the same. The Corporate Debtor has taken Kraft Paper reels from the Operational Creditor through manufacturer company by way of Letter of Credit (L.C.). The Corporate Debtor handed over cheques to the Operational Creditor in respect of liability towards Kagaz

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## Facts

M/s Himanshu Paper Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Kagaz Print N Pack India Pvt. Ltd. (Corporate Debtor) for a debt of Rs. 81,93,330/-. The Operational Creditor is a trader of Kraft Paper Reels, and the Corporate Debtor used to place purchase orders. The Corporate Debtor allegedly defaulted on payments. The Operational Creditor supplied materials through various manufacturers as per the Corporate Debtor's instructions. The Corporate Debtor issued cheques that were dishonored. The Operational Creditor filed a criminal complaint under Section 138 of the N.I. Act, which is pending. A statutory Demand Notice was issued on

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## Issues and analysis

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

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

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**Reasoning:** The Adjudicating Authority considered the documents and arguments presented by both

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**Interpretation:** Section 9 provides the mechanism for operational creditors to trigger the CIRP

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**Application:** The Adjudicating Authority found that the Operational Creditor had provided

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## Parties

- **Judges:** SH. P.S.N.…; SH. RAHUL…
- **Appellants:** M/s HIMANSHU…
- **Respondents:** M/s KAGAZ PRINT N…
- **Advocates:** Tarun Agg…; Kamal A…; +1 more

## Timeline

- **2019-07-26 — Demand Notice…**: Operational Creditor issued a statutory Demand Notice under section 8 of IBC, 2016 to the…
- **2019-08-06 — Reply to Deman…**: Corporate Debtor replied to the Demand Notice, disputing the debt and offering a…

## 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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