# In the matter of Sonal Adhesive Ltd. C.P. No. 1955-IBC-MB-2019

> NCLT judgment dated 2022-03-11. Citation: TCN-2022-NCLT-03770. Dyno Inks, the Operational Creditor (OC), filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 11 Mar 2022
- **Citation:** TCN-2022-NCLT-03770
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sonal-adhesive-ltd-cp-no-1955-ibc-mb-2019-5845a045

## Summary

### Background

Dyno Inks, the Operational Creditor (OC), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Sonal Adhesive Ltd., the Corporate Debtor (CD). The OC claimed that the CD had an outstanding debt of Rs. 5,67,697, plus interest of Rs. 4,51,700, totaling Rs. 10,19,397, for the supply of printing inks. The CD, however, contested the claim, asserting that the materials supplied by the OC were of inferior quality and were rejected by its clients. The CD also claimed that the petition was time-barred.

## Facts

Dyno Inks (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sonal Adhesive Ltd. (Corporate Debtor). Dyno Inks claimed an outstanding debt of Rs. 5,67,697 plus interest of Rs. 4,51,700, totaling Rs. 10,19,397, for supplying printing inks. Sonal Adhesive Ltd. argued that the materials were of inferior quality and rejected by its clients. Purchase orders were issued between 16.05.2015 and 19.11.2015. The Corporate Debtor made payments totaling Rs. 17,70,859, leaving an outstanding balance. The Operational Creditor issued 14 invoices from 23.05.2015 to 30.12.2015. Dyno Inks issued a notice under Section 8 of the Code demanding payment, calculating

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** The adjudicating authority must reject the application under Section 9(5)(2)(d) if a

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**Reasoning:** The NCLT found that the Corporate Debtor had raised a dispute regarding the quality of

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**Interpretation:** Section 9 of the IBC requires the adjudicating authority to reject an

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**Application:** In this case, the Corporate Debtor had raised a dispute regarding the quality

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## Parties

- **Judges:** P.N. Des…; K.K. V…
- **Appellants:** Dyno…
- **Respondents:** Sonal Adhesive…

## Timeline

- **1991-11-18 — Incorporation of…**: Sonal Adhesive Ltd. was…
- **2015-05-16 — Purchase…**: CD issued purchase orders between 16.05.2015 and 19.11.2015 to OC for supply of various…

## 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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