# In the matter of Savitri Polyesters Pvt. Ltd.

> NCLT judgment dated 2023-09-11. Citation: TCN-2023-NCLT-01713. Sumilon Industries Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 11 Sept 2023
- **Citation:** TCN-2023-NCLT-01713
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/savitri-polyesters-pvt-ltd-96022e41

## Summary

### Background

Sumilon Industries Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Savitri Polyesters Pvt. Ltd. (Corporate Debtor) for default in payment of an outstanding amount of Rs. 1,28,32,169/-. The Operational Creditor claimed to have supplied certain LAC coated metallised Polyster Film to the Corporate Debtor, for which invoices were raised and received without dispute. The Corporate Debtor contested the application, raising objections regarding authorization, false bank certificates, limitation, and the inclusion of interest in the claim. The NCLT Ahmedabad Bench considered the arguments of both parties and the material on record.

## Facts

Sumilon Industries Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Savitri Polyesters Pvt. Ltd. (Corporate Debtor) for default in payment of Rs. 1,28,32,169/-. The Operational Creditor supplied LAC coated metallised Polyster Film to the Corporate Debtor, for which invoices were raised and received without dispute. The invoices were raised between 02.01.2018 and 05.12.2018, with payment terms of 30 days from the date of invoice. The Corporate Debtor failed to make payments within the agreed terms, leading to late payment charges. The Operational Creditor served a demand notice on 09.10.2021, which was delivered on 16.10.2022, but the Corporate Debtor did not reply or make any payment. The

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The NCLT considered the arguments of both parties and the material on record, including

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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 established a default in

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## Parties

- **Judges:** SHAMMI…; KAUSHALENDRA…
- **Appellants:** Sumilon Industries…
- **Respondents:** Savitri Polyesters…

## Timeline

- **1996-06-27 — Incorporation of…**: Sumilon Industries Pvt.…
- **1997-01-10 — Incorporation of…**: Savitri Polyesters Pvt.…

## 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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