# In the matter of Neemsar Vyapaar Private Limited Company Petition No. (IB)-716(ND)-2022

> NCLT judgment dated 2022-12-23. Citation: TCN-2022-NCLT-00022. The case involves an application filed by M/s. Montage Enterprises Private Limited, the…

- **Court:** NCLT
- **Order date:** 23 Dec 2022
- **Citation:** TCN-2022-NCLT-00022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/neemsar-vyapaar-private-limited-company-petition-no-ib-716nd-2022-97ef72f7

## Summary

### Background

The case involves an application filed by M/s. Montage Enterprises Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Neemsar Vyapaar Private Limited, the Corporate Debtor, for defaulting on a payment of Rs. 7,33,96,416.98/-, which includes a principal amount of Rs. 6,74,28,927/- and interest amounting to Rs. 59,67,489.98/- at 18% per annum. The Operational Creditor and Corporate Debtor had entered into a 'Goods Sale and Purchase Agreement' dated 19.09.2019, where the Operational Creditor was to supply goods to the Corporate Debtor. The Corporate Debtor started defaulting on payments since 24.11.2021.

## Facts

M/s. Montage Enterprises Private Limited (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. Neemsar Vyapaar Private Limited (Corporate Debtor). The application was based on a default in payment of Rs. 7,33,96,416.98/-, including a principal amount of Rs. 6,74,28,927/- and interest of Rs. 59,67,489.98/- at 18% per annum. The Operational Creditor and Corporate Debtor had a 'Goods Sale and Purchase Agreement' dated 19.09.2019. The Corporate Debtor started defaulting on payments since 24.11.2021. The Operational Creditor issued a demand notice on 12.09.2022, received by the Corporate Debtor on 14.09.2022. The Corporate Debtor replied on 20.09.2022,

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## Issues and analysis

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

**Ratio:** An application under Section 9 of the IBC is maintainable if the debt qualifies as an

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**Reasoning:** The Adjudicating Authority considered the submissions, documents, and the Corporate

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

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**Application:** In this case, the Adjudicating Authority found that the debt was an

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** M/s. Montage…
- **Respondents:** M/s. Neemsar…

## Timeline

- **2019-09-19 — Goods Sale and Purchase…**: Operational Creditor and Corporate Debtor entered into a 'Goods Sale and Purchase…
- **2021-11-24 — Default in P…**: Corporate Debtor started defaulting on…

## 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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