# In the matter of Manglam Paper Private Limited

> NCLT judgment dated 2024-04-22. Citation: TCN-2024-NCLT-01656. The case involves an application filed by Dayaram G. Teli, proprietor of Jagdishwar Trading…

- **Court:** NCLT
- **Order date:** 22 Apr 2024
- **Citation:** TCN-2024-NCLT-01656
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manglam-paper-private-limited-a7603f23

## Summary

### Background

The case involves an application filed by Dayaram G. Teli, proprietor of Jagdishwar Trading Company (Operational Creditor), against Manglam Paper Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP) due to a defaulted payment of Rs. 50,60,964/-. The Operational Creditor supplied waste paper to the Corporate Debtor between 04.06.2019 and 29.07.2019, for which invoices were raised. The Corporate Debtor made partial payments and issued a debit note, but a significant balance remained outstanding. A demand notice was issued, and the Corporate Debtor belatedly replied, neither acknowledging the debt nor disclosing any dispute. Initially, a withdrawal pursis was filed

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## Facts

Dayaram G. Teli, proprietor of Jagdishwar Trading Company, filed an application against Manglam Paper Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. Jagdishwar Trading Company supplied waste paper to Manglam Paper Private Limited between 04.06.2019 and 29.07.2019, amounting to Rs. 53,20,267/-. Tax invoices were raised for these supplies. Manglam Paper Private Limited made partial payments totaling Rs. 2,20,316/- and issued a debit note of Rs. 38,987/-, leaving an outstanding balance of Rs. 50,60,964/-. A demand notice was issued on 11.12.2019, which was belatedly replied to by Manglam Paper Private Limited on 23.01.2020, without acknowledging the debt or disclosing any dispute. A settlement agreement was executed on 07.06.2022, where

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## Issues and analysis

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

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

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**Reasoning:** The court considered the documents submitted, including invoices, ledger accounts, and

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court found that the Operational Creditor had supplied goods, invoices were

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Dayaram G…
- **Respondents:** Manglam Paper…; Mangalam Paper…

## Timeline

- **2020-02-05 — Application…**: Dayaram G. Teli filed the…
- **2019-06-04 — Supply Perio…**: Start date of the period during which waste…

## 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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