# In the matter of Sebacic India Limited

> NCLT judgment dated 2024-05-15. Citation: TCN-2024-NCLT-01349. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 15 May 2024
- **Citation:** TCN-2024-NCLT-01349
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sebacic-india-limited-03209541

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Basil Enterprise (Operational Creditor) against Sebacic India Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP) due to default in payment of an operational debt amounting to Rs. 2,19,31,400. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for imported coal supplied between January 11, 2021, and April 18, 2021. The Operational Creditor issued a demand notice on December 21, 2022, which was served to the Corporate Debtor on December 24, 2022, but the Corporate Debtor neither made the payment nor replied to the notice. The Corporate Debtor contended that the coal supplied was of poor quality and

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## Facts

Basil Enterprise (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Sebacic India Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The application was filed due to the Corporate Debtor's default in payment of an operational debt amounting to Rs. 2,19,31,400. The debt arose from the supply of imported coal by the Operational Creditor to the Corporate Debtor between January 11, 2021, and April 18, 2021. The Operational Creditor raised various tax invoices for the supplied coal, aggregating to Rs. 1,60,54,117, with interest. As per the tax invoices, the Corporate Debtor was required to clear the invoices within 90 days from the date of invoice. The date of default was

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, for …

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

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**Reasoning:** The Adjudicating Authority found that the Operational Creditor had supplied goods and

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

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**Application:** In this case, the Operational Creditor had supplied coal to the Corporate

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Basil Ente…
- **Respondents:** Sebacic India…; Sebacic Ind…

## Timeline

- **2023-01-20 — Application…**: The Present Application is filed on 20.01.2023 by the Applicant- Basil Enterprise against…
- **2022-12-21 — Demand Notice…**: On 21.12.2022, the Operational Creditor has issued Demand Notice in Form-3 which was duly…

## 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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