# In the matter of Kanodia Technoplast Limited

> NCLT judgment dated 2023-10-16. Citation: TCN-2023-NCLT-01198. Chemical Suppliers India Pvt Ltd filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 16 Oct 2023
- **Citation:** TCN-2023-NCLT-01198
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kanodia-technoplast-limited-1b3da13f

## Summary

### Background

Chemical Suppliers India Pvt Ltd filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kanodia Technoplast Ltd, alleging default in payment of Rs. 7,84,94,085/-. The application was based on invoices issued between 01.07.2020 and 03.06.2021. Kanodia Technoplast Ltd contended that the application was not maintainable under Section 10A of the IBC, as the default occurred during the period from 25.03.2020 to 24.03.2021, which is excluded under Section 10A.

## Facts

Chemical Suppliers India Pvt Ltd (Operational Creditor/Applicant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kanodia Technoplast Ltd (Corporate Debtor). The application was based on a default in payment of Rs. 7,84,94,085/-, which included a principal amount of Rs. 6,13,26,586/- and interest of Rs. 1,71,67,229/-. The invoices were issued from 01.07.2020 to 03.06.2021. The Corporate Debtor contended that the application was not maintainable under Section 10A of the IBC, as the amount claimed in Part-IV of the application fell due during the period from 25.03.2020 to 24.03.2021. The Corporate Debtor also submitted that the parties had entered into an amicable

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the IBC is maintainable when the default occurred …

**Ratio:** Section 10A of the IBC prohibits the initiation of CIRP for defaults occurring on or

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**Reasoning:** The court relied on the judgment of the Supreme Court in Ramesh Kymal v. Siemens Gamesa

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**Interpretation:** Section 10A is interpreted as a bar on the institution of any application for

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**Application:** The court found that the default in the present case occurred during the period

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## Parties

- **Judges:** P.S.N. P…; BINOD KUMAR…
- **Appellants:** Chemical Suppliers…
- **Respondents:** Kanodia Technoplas…; Kanodia Technoplas…

## Timeline

- **2020-03-25 — Start of Section 10A…**: Defaults occurring on or after this date…
- **2020-07-01 — Start of Invoi…**: Invoices issued from this date form…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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