# In the matter of M.S Graphics Pvt. Ltd.

> NCLT judgment dated 2023-12-19. Citation: TCN-2023-NCLT-00153. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 19 Dec 2023
- **Citation:** TCN-2023-NCLT-00153
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ms-graphics-pvt-ltd-a38d645d

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Kodak India Private Limited (Operational Creditor) against M.S. Graphics Pvt. Ltd. (Corporate Debtor), seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for goods supplied between June 2018 and August 2021. Several payment arrangements were made, including a 'Payment Plan Agreement', but disputes arose regarding the adjustment of payments against current and past dues. The Corporate Debtor denied the existence of debt and alleged misrepresentation by the Operational Creditor.

## Facts

Kodak India Private Limited (Operational Creditor) supplied goods to M.S. Graphics Pvt. Ltd. (Corporate Debtor) based on purchase orders placed between June 27, 2018, and October 1, 2021. The Operational Creditor raised invoices for the sale and supply of goods, which were accepted by the Corporate Debtor without protest. Payments were made by the Corporate Debtor on an ad-hoc basis and according to a 'Payment Plan Agreement' dated February 19, 2019. From September 25, 2020, to August 9, 2021, the Operational Creditor raised invoices amounting to Rs. 6,26,93,986. The Operational Creditor received Rs. 11,20,229 as part payment. The Operational Creditor claimed that Rs. 6,31,49,363 was outstanding. The Corporate Debtor issued several cheques from August 2021 to September

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

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

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**Reasoning:** The court found that the invoices for the period from September 2020 to August 2021,

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**Interpretation:** The court interpreted that if payments have been made against specific

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**Application:** In this case, the Operational Creditor claimed default based on invoices from

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Kodak India…
- **Respondents:** M.S. Graphics…

## Timeline

- **2018-06-27 — Start of Business…**: Work/Purchase orders were placed by the Corporate Debtor in a running and continuous…
- **2019-02-19 — Payment Plan A…**: A 'Payment Plan Agreement' was executed between the Corporate Debtor and the Operational…

## 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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