# In the matter of New Bombay Paper Mills Private Limited

> NCLT judgment dated 2025-04-02. Citation: TCN-2025-NCLT-00277. Maheshwari Fuelchem Private Limited, the Operational Creditor (OC), filed an application under…

- **Court:** NCLT
- **Order date:** 2 Apr 2025
- **Citation:** TCN-2025-NCLT-00277
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/new-bombay-paper-mills-private-limited-a0575c3c

## Summary

### Background

Maheshwari Fuelchem Private Limited, the Operational Creditor (OC), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC/Code) on 16.02.2024, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against New Bombay Paper Mills Private Limited, the Corporate Debtor (CD), for an alleged default of Rs.3,02,31,477/-, in addition to interest @15% p.a. accruing w.e.f. 08.08.2023. The OC filed an Additional Affidavit dated 29.01.2025, clarifying that the date of default is to be taken as 10.07.2023, instead of 08.08.2023.

## Facts

Maheshwari Fuelchem Private Limited (Operational Creditor) filed an application under Section 9 of the IBC against New Bombay Paper Mills Private Limited (Corporate Debtor) for a default of Rs. 3,02,31,477/- plus interest. The OC and CD had a long-standing arrangement for the sale and purchase of coal between 01.04.2023 and 08.07.2023. The CD's ledger showed a purchase of coal worth Rs. 5,00,81,997/- from the OC. The OC sent reminders for payment between August and September 2023. The CD admitted its liability and default on 26.03.2025. The date of default was initially mentioned as 08.08.2023 but was later clarified as 10.07.2023 by the OC.

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

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

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**Reasoning:** The court noted that the CD admitted its liability and default. The OC had filed the

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

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**Application:** The court applied Section 9, finding that the OC had demonstrated a default by

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## Parties

- **Judges:** ANIL RAJ C…; K. R. SAJI…
- **Appellants:** Maheshwari…
- **Respondents:** New Bombay Paper…

## Timeline

- **2023-04-01 — Coal Sale and Purchase…**: The Operational Creditor (OC) and Corporate Debtor (CD) entered into a long-standing…
- **2023-07-08 — End of Coal Sa…**: The period for the sale and purchase of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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