# In the matter of Pack-N-Pack Packaging Pvt. Ltd.

> NCLT judgment dated 2023-10-30. Citation: TCN-2023-NCLT-00999. M/s Greenfields Petrichor Private Limited, the operational creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 30 Oct 2023
- **Citation:** TCN-2023-NCLT-00999
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pack-n-pack-packaging-pvt-ltd-a4f7c2d3

## Summary

### Background

M/s Greenfields Petrichor Private Limited, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Pack N Pack Packaging Pvt. Ltd., the corporate debtor, for failing to make a payment of Rs. 4,20,00,001. The operational creditor and corporate debtor had a business relationship since 2017 involving the sale and purchase of paper and its products. The operational creditor supplied materials to the corporate debtor and raised invoices between 23.10.2017 and 20.09.2019. The corporate debtor made payments from time to time, and the operational creditor did not object to delayed payments. The corporate debtor stopped repaying dues from

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## Facts

M/s Greenfields Petrichor Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Pack N Pack Packaging Pvt. Ltd. (Corporate Debtor) for non-payment of Rs. 4,20,00,001. The Operational Creditor and Corporate Debtor had a business relationship since 2017, involving the sale and purchase of paper and its products, with the Operational Creditor supplying materials and raising invoices between 23.10.2017 and 20.09.2019. The Corporate Debtor made payments, but delays were not objected to. From September 2019, the Corporate Debtor stopped repaying dues. A demand notice under Section 8 of the IBC was issued on 21.09.2019. The

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## Issues and analysis

### Issue 1: Whether the outstanding debt, arising from a settlement agreement after the initial operational …

**Ratio:** The ratio is that once a settlement agreement is entered into, the nature of the debt

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**Reasoning:** The court reasoned that the original operational debt was extinguished upon entering into

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**Interpretation:** Section 5(21) of the IBC defines 'operational debt' as a claim in respect of

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**Application:** In this case, the original operational debt was for the supply of paper and its

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; RAHUL BHA…
- **Appellants:** M/s. Greenfields…
- **Respondents:** M/s Pack N Pack…

## Timeline

- **2017-01-01 — Business Rela…**: Operational Creditor and Corporate Debtor entered into a business relationship for the…
- **2017-10-23 — Supply P…**: Operational Creditor supplied materials to the Corporate Debtor and raised invoices…

## 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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