# In the matter of Nandanam Tiles and Sanitaries Private Limited

> NCLT judgment dated 2024-01-19. Citation: TCN-2024-NCLT-02985. The case involves an application filed by Cherumadathil Sales Corporation, an Operational…

- **Court:** NCLT
- **Order date:** 19 Jan 2024
- **Citation:** TCN-2024-NCLT-02985
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nandanam-tiles-and-sanitaries-private-limited-fbb21b67

## Summary

### Background

The case involves an application filed by Cherumadathil Sales Corporation, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against Nandanam Tiles and Sanitaries Private Limited, the Corporate Debtor. The application is based on the alleged default in repayment of an operational debt amounting to Rs. 1,09,84,984/-. The Corporate Debtor is a private company incorporated in 2016, engaged in the business of dealing in ceramic tiles, floor tiles, wall panels, sanitaries, sanitary fittings, marbles, granites, and other building materials. The Operational Creditor is a

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## Facts

Cherumadathil Sales Corporation, the Operational Creditor, filed an application under Section 9 of the IBC to initiate CIRP against Nandanam Tiles and Sanitaries Private Limited, the Corporate Debtor, due to a default in repayment of an operational debt of Rs. 1,09,84,984/-. The Corporate Debtor is a private company engaged in the business of dealing in building materials. The Operational Creditor is a partnership firm involved in the marketing and distribution of bath fittings and sanitary wares. The Corporate Debtor failed to make payments, leading to a settlement agreement on 26.06.2023, acknowledging the debt with a 9% p.a. interest rate from 31.03.2020. The Corporate Debtor defaulted on the agreed payment schedule, with the first payment of Rs. 54,92,492.05/- due

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the IBC for initiating …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The Tribunal considered the facts presented and the documents submitted by the

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** The Tribunal found that the Operational Creditor had met the requirements under

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## Parties

- **Judges:** Shyam Babu…; T Krishna…
- **Appellants:** CHERUMADATHIL…
- **Respondents:** NANDANAM TILES…

## Timeline

- **2016-01-01 — Incorporation of…**: Nandanam Tiles and Sanitaries Private…
- **2020-03-31 — Interest Calculation…**: The settlement agreement stipulated a 9% p.a. interest rate on the outstanding amount…

## 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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