# In the matter of Sindhura Paper Private Limited CP (IB) No. 60-9-AMR-2020

> NCLT judgment dated 2022-03-07. Citation: TCN-2022-NCLT-03863. M/s.Chevuri Enterprises, the Operational Creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 7 Mar 2022
- **Citation:** TCN-2022-NCLT-03863
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sindhura-paper-private-limited-cp-ib-no-60-9-amr-2020-9a8e1b0e

## Summary

### Background

M/s.Chevuri Enterprises, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s. Sindhura Paper Private Limited, the Corporate Debtor. The Operational Creditor alleged that the Corporate Debtor defaulted in payment of Rs. 3,60,11,075/- for goods supplied. The Corporate Debtor denied the averments, claiming excess payments and raising concerns about the Operational Creditor's accounting practices and relationship with M/s. Vaishnavi Impex.

## Facts

M/s. Chevuri Enterprises (Operational Creditor) supplied waste paper and old newspapers to M/s. Sindhura Paper Private Limited (Corporate Debtor). The Corporate Debtor allegedly defaulted on payments amounting to Rs. 3,60,11,075/- for invoices raised between 14.11.2017 and 30.11.2019. The Operational Creditor issued a demand notice on 16.03.2020, which went unanswered. The Corporate Debtor claimed to have made payments totaling Rs. 13,63,22,059/- between 01.04.2017 and 31.03.2020, resulting in an excess balance in their favor. The Corporate Debtor also alleged that their accounts were erroneously clubbed with M/s. Vaishnavi Impex, which shares the same Managing Director as the Corporate Debtor. The Operational Creditor refuted these claims, stating that the Corporate

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## Issues and analysis

### Issue 1: Whether the Operational Creditor could prove that the Corporate Debtor has failed to discharge the …

**Ratio:** The legal principle is that if a corporate debtor defaults on a debt exceeding the

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**Reasoning:** The NCLT reasoned that the Corporate Debtor admitted to the purchases and failed to

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**Interpretation:** The issue revolves around whether the operational creditor has successfully

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**Application:** The NCLT applied the legal principle to the facts of the case, finding that the

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** M/s.Chevuri…
- **Respondents:** M/s.Sindhura…

## Timeline

- **2017-11-14 — Invoice Perio…**: Start date of the period for which invoices…
- **2019-11-30 — Invoice Per…**: End date of the period for which invoices…

## 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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