# In the matter of OHM Srinivasa Paper Boards Private Limited CP-IB-130(CHE)-2021

> NCLT judgment dated 2022-11-04. Citation: TCN-2022-NCLT-00527. The case involves an application filed by M/s. Pathy Enterprises, an operational creditor,…

- **Court:** NCLT
- **Order date:** 4 Nov 2022
- **Citation:** TCN-2022-NCLT-00527
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ohm-srinivasa-paper-boards-private-limited-cp-ib-130che-2021-7480de31

## Summary

### Background

The case involves an application filed by M/s. Pathy Enterprises, an operational creditor, against M/s. Ohm Srinivasa Paper Boards Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, declare a moratorium, and appoint an Interim Resolution Professional (IRP). The corporate debtor contested the application, arguing that the debt fell below the threshold required for initiating CIRP and that the nature of the debt had changed due to a Memorandum of Understanding (MoU) between the parties.

## Facts

M/s. Pathy Enterprises, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Ohm Srinivasa Paper Boards Private Limited, a corporate debtor. The operational creditor claimed a total debt of Rs. 1,23,29,308/-, including a principal debt of Rs. 1,01,02,625/- and interest of Rs. 22,26,683/-. The last invoice date was 03.02.2020. The operational creditor supplied raw materials to the corporate debtor from 01.06.2018. A Memorandum of Understanding (MoU) dated 28.12.2019 was entered into between the parties, wherein the corporate debtor acknowledged a liability of Rs. 71,00,000/- and sought additional supply of raw material worth Rs. 30,40,000/-. Another MoU dated 10.09.2020 modified the repayment terms. The

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor is maintainable under Section 9 of the …

**Ratio:** The maintainability of an application under Section 9 of the IBC depends on whether the

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**Reasoning:** The court considered the submissions of both parties and the documents on record,

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

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**Application:** The court found that the outstanding debt, after considering payments made by

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## Parties

- **Judges:** DEEPTI M…; SAMEER…
- **Appellants:** M/s. Pathy…
- **Respondents:** M/s. Ohm Srinivasa…

## Timeline

- **2011-03-29 — Incorporation of…**: M/s. Ohm Srinivasa Paper Boards Private Limited incorporated under the Companies Act,…
- **2018-06-01 — Supply of Raw…**: M/s. Pathy Enterprises started supplying raw materials to M/s. Ohm Srinivasa Paper Boards…

## 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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