# In the matter of Samtel Glass Limited

> NCLT judgment dated 2023-09-19. Citation: TCN-2023-NCLT-01554. The case involves an application filed by Mr. Mahendra Kumar Sharma, an operational creditor,…

- **Court:** NCLT
- **Order date:** 19 Sept 2023
- **Citation:** TCN-2023-NCLT-01554
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/samtel-glass-limited-01703119

## Summary

### Background

The case involves an application filed by Mr. Mahendra Kumar Sharma, an operational creditor, against Samtel Glass Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claims a default of Rs. 13,58,249/-. The corporate debtor's factory discontinued operations on 07.11.2012, leading to disputes with workers. A settlement was reached before the Labour Tribunal on 20.03.2014, but the corporate debtor allegedly breached the terms. The corporate debtor's property was mortgaged with secured lenders, and SBI initiated recovery proceedings under SARFAESI Act, 2002. The corporate debtor offered a One Time Settlement (OTS) to the banks, which was accepted by SBI. The auction purchaser challenged this, leading to

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## Facts

Mr. Mahendra Kumar Sharma, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Samtel Glass Limited, the corporate debtor, claiming a default of Rs. 13,58,249/-. The corporate debtor's factory ceased operations on 07.11.2012, leading to disputes with its workers. A settlement was reached before the Labour Tribunal on 20.03.2014, with the corporate debtor agreeing to pay outstanding dues. The settlement terms included termination of 473 workmen, payment of salary from October to November 2012, bonus for 2011-12 and 2012-13, and compensation under the Industrial Disputes Act. The corporate debtor paid the first installment of Rs. 95,00,000/- but failed to disburse the remaining amount. The corporate debtor's

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## Issues and analysis

### Issue 1: Whether the application to initiate CIRP is valid under Section 9 of the Insolvency and Bankruptcy …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP if there is an

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**Reasoning:** The NCLT determined that the operational debt was due and payable, and that the

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** The NCLT applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** Deep Chandr…; ATUL CHAT…
- **Appellants:** Mahendra Kumar…
- **Respondents:** Samtel Glass…; Abhishek…
- **Advocates:** Prabhansh…; Abhishek…

## Timeline

- **1986-07-24 — Incorporation of…**: Samtel Glass Limited…
- **2012-11-07 — Factory C…**: Corporate Debtor…

## 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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