# In the matter of Shreyas Paper Pvt. Ltd.

> NCLT judgment dated 2023-10-31. Citation: TCN-2023-NCLT-00969. The case involves an application filed by Mr. A.N. Srinivasa Raje Urs, the Operational Creditor…

- **Court:** NCLT
- **Order date:** 31 Oct 2023
- **Citation:** TCN-2023-NCLT-00969
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shreyas-paper-pvt-ltd-b25b3492

## Summary

### Background

The case involves an application filed by Mr. A.N. Srinivasa Raje Urs, the Operational Creditor (OC), against M/s. Shreyas Papers Pvt. Ltd., the Corporate Debtor (CD), under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) due to a default of Rs. 1,86,59,180. The OC claims to be a supplier of waste paper products to the CD. The CD disputes the claim, alleging substandard quality of goods and raising concerns about the invoices. The OC contends that the CD has acknowledged the debt and that the petition is within the limitation period.

## Facts

Mr. A.N. Srinivasa Raje Urs, the Operational Creditor (OC) and sole proprietor of M/s. Sri Krishna Enterprises, filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Shreyas Papers Pvt. Ltd., the Corporate Debtor (CD), for defaulting on a payment of Rs. 1,86,59,180. The OC is a dealer, supplier, and wholesaler of waste paper products, and claims to have supplied goods to the CD for over five years. The OC alleges that the CD failed to honor invoices despite receiving quality goods. The CD acknowledged its debt obligation in confirmation of accounts for the period 01.04.2019 to 28.12.2019. The OC issued a demand notice on 07.10.2020, which the CD received at its Dandeli address on 26.10.2020. The CD contends that the goods supplied

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## Issues and analysis

### Issue 1: Whether the petition 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 NCLT considered the arguments and evidence presented by both parties, including

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

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

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** A.N. Srinivasa…
- **Respondents:** Shreyas Papers…

## Timeline

- **1992-07-14 — Incorporation of…**: M/s. Shreyas Papers Pvt. Ltd. incorporated…
- **2020-10-07 — Demand Notice…**: Operational Creditor issued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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