# In the matter of PJM Minerals and Industries Private Limited IA 458-2021 in CP (IB) No. 976-MB-IV-2020

> NCLT judgment dated 2023-04-28. Citation: TCN-2023-NCLT-03564. AMC Chemicals Private Limited, the Operational Creditor/Applicant, filed an application under…

- **Court:** NCLT
- **Order date:** 28 Apr 2023
- **Citation:** TCN-2023-NCLT-03564
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pjm-minerals-and-industries-private-limited-ia-458-2021-in-cp-ib-no-976-mb-iv-20-7f90d812

## Summary

### Background

AMC Chemicals Private Limited, the Operational Creditor/Applicant, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against PJM Minerals and Industries Private Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor failed to supply the remaining raw materials after receiving advance payments, leading to an outstanding debt of Rs. 1,78,51,034/-. The Corporate Debtor argued that the application was not maintainable as it was for recovery of advance money and not an operational debt.

## Facts

AMC Chemicals Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against PJM Minerals and Industries Private Limited (Corporate Debtor) for initiating CIRP. The Operational Creditor claimed that it had placed orders for Manganese Oxide Powder worth Rs. 5,07,41,057 with the Corporate Debtor, who supplied raw material and raised 57 invoices from August 2019 to March 2020. The Operational Creditor made advance payments, but the Corporate Debtor only supplied goods worth Rs. 3,28,90,023, leaving an outstanding amount of Rs. 1,78,51,034/-. The Operational Creditor issued a demand notice on 29.07.2020, but the Corporate Debtor did not issue a notice of dispute. The Corporate Debtor argued that 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:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP against a

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**Reasoning:** The NCLT considered the arguments presented by both parties and examined the documents

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

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**Application:** The NCLT found that the Operational Creditor had met the requirements under

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** AMC Chemicals…
- **Respondents:** PJM Minerals and…

## Timeline

- **2020-07-23 — Board Reso…**: The Operational Creditor passed a Board Resolution authorizing the filing of the…
- **2020-07-29 — Demand N…**: The Operational Creditor issued a demand notice to the Corporate Debtor under Section 8…

## 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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