# In the matter of Piyush Pharmachem (India) Private Limited CP(IB) No. 435-9-HDB-2020

> NCLT judgment dated 2022-01-10. Citation: TCN-2022-NCLT-04471. The case originates from a petition filed by Vasavi Traders, the Operational Creditor, against…

- **Court:** NCLT
- **Order date:** 10 Jan 2022
- **Citation:** TCN-2022-NCLT-04471
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/piyush-pharmachem-india-private-limited-cpib-no-435-9-hdb-2020-4eca2231

## Summary

### Background

The case originates from a petition filed by Vasavi Traders, the Operational Creditor, against Piyush Pharmachem (India) Pvt Ltd, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on a debt of Rs. 1,28,45,967/-, which included a principal amount of Rs. 82,82,762/- and interest of Rs. 45,63,205/- calculated at 24% per annum from the invoice date to the demand notice date. The Corporate Debtor contested the claim, arguing that they had already paid a significant portion of the debt and that the Operational Creditor had wrongly claimed the debt amount.

## Facts

Mr. Kolluru Venkatesh (M/s. Vasavi Traders), the Operational Creditor, is in the business of selling chemicals and allied products. M/s. Piyush Pharmachem (India) Private Limited, the Corporate Debtor, is engaged in trading and supplying industrial and pharmaceutical chemicals. The Operational Creditor supplied materials to the Corporate Debtor based on purchase orders and issued tax invoices. The Corporate Debtor received the chemicals and acknowledged their receipt. The Corporate Debtor failed to make payments, leading the Operational Creditor to issue a demand notice dated 2020-01-20 for Rs. 2,14,20,762/-, including principal and interest. Some payments were made after the initial demand notice. A second demand notice was issued on 2020-09-14 for Rs. 1,28,45,967/-,

…

## Issues and analysis

### Issue 1: Whether there is an "Operational …

**Ratio:** The onus is on the Operational Creditor to establish the existence of an Operational Debt

…

**Reasoning:** The Learned Counsel for the Applicant submitted that the amount of Rs.2,14,20,762/- being

…

**Interpretation:** The Adjudicating Authority is not required to decide mis-match of 'debt'

…

**Application:** The Corporate Debtor admitted that the debt amount left is Rs.9,88,177/-. This

…

## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Kolluru Ven…
- **Respondents:** Piyush Pharmachem…

## Timeline

- **2020-01-20 — Demand Notice…**: Operational Creditor issued a demand notice in Form-3 demanding payment of…
- **2020-09-14 — Second Demand Notice…**: Operational Creditor issued a second demand notice in Form-3 demanding payment of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/piyush-pharmachem-india-private-limited-cpib-no-435-9-hdb-2020-4eca2231