# In the matter of Ransan Packaging Pvt. Ltd.

> NCLT judgment dated 2023-12-14. Citation: TCN-2023-NCLT-00229. Rose Flower Company (Papers) Pvt. Ltd., an operational creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 14 Dec 2023
- **Citation:** TCN-2023-NCLT-00229
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ransan-packaging-pvt-ltd-9c5b812f

## Summary

### Background

Rose Flower Company (Papers) Pvt. Ltd., an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Ransan Packaging Pvt. Ltd., the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The applicant claimed that the corporate debtor defaulted on payments for the supply of paper boards. The corporate debtor contested the application, alleging pre-existing disputes regarding the quality and pricing of the supplied goods, and also raised concerns about the NeSL certificate not being filed initially. The applicant argued that the corporate debtor never raised any quality issues and had even confirmed the ledger balance. The applicant also stated that the corporate debtor accepted the

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## Facts

Rose Flower Company (Papers) Pvt. Ltd. (the Applicant) is in the business of trading papers and boards. Ransan Packaging Pvt. Ltd. (the Corporate Debtor) is in the business of supplying customized packing cartons. The Applicant supplied paper boards to the Corporate Debtor since 19.12.2013. The Corporate Debtor placed purchase orders through telecom/email, and the Applicant then placed orders with ITC Limited (PSPD). The goods were delivered to the Corporate Debtor's premises. Business relations strained in 2021 due to delayed payments. A Director of the Corporate Debtor wrote to the Applicant on 24.06.2021, promising to clear outstanding dues. A cheque for Rs.10,00,000 issued on 20.09.2021 was dishonored with the endorsement "Excess Arrangement". Another

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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 IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The court reasoned that the debt was more than Rs. 1 crore and the date of default was

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

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**Application:** The court applied the provisions of Section 9 to the facts of the case, finding

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Rose Flower…
- **Respondents:** Ransan Packaging…
- **Advocates:** Kaushik Narayanan…; E. Om Pr…

## Timeline

- **2013-12-19 — Business Comm…**: Rose Flower Company started supplying…
- **2021-06-24 — Letter of As…**: A Director of Ransan Packaging wrote to Rose Flower Company assuring that outstanding…

## 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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