# In the matter of Suvarna Additives Private Limited

> NCLT judgment dated 2024-06-12. Citation: TCN-2024-NCLT-01175. Mittal Polymers, the Operational Creditor (OC), filed a Company Petition (C.P. (IB) No.…

- **Court:** NCLT
- **Order date:** 12 Jun 2024
- **Citation:** TCN-2024-NCLT-01175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suvarna-additives-private-limited-b4ae97f0

## Summary

### Background

Mittal Polymers, the Operational Creditor (OC), filed a Company Petition (C.P. (IB) No. 95/MB/2022) on 20.02.2021 under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Suvarna Additives Private Limited, the Corporate Debtor (CD). The alleged default amount was Rs. 2,33,10,961/-, including principal and compound interest, based on unpaid invoices issued between 2015 and 2019. The date of default was mentioned as 16.09.2019, when the CD stopped making payments towards invoice dated 02.05.2019.

## Facts

Mittal Polymers (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Suvarna Additives Private Limited (Corporate Debtor). The alleged default amount was Rs. 2,33,10,961/-, comprising principal (Rs. 1,12,46,443/-) and compound interest (Rs. 1,20,64,518/- as of 01.11.2019). The claim was based on unpaid invoices for raw materials supplied by Mittal Polymers to Suvarna Additives between 2015 and 2019. The date of default was 16.09.2019, when Suvarna Additives stopped payments towards invoice dated 02.05.2019. Mittal Polymers issued a demand notice on 15.11.2019. Suvarna Additives made a part-payment of Rs. 50,000 after the demand notice. The OC is a

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## Issues and analysis

### Issue 1: Whether the Operational Creditor (OC) has successfully proven the existence of an operational debt …

**Ratio:** The initiation of CIRP requires sufficient proof of debt and default. The Adjudicating

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**Reasoning:** The court found that the OC did not produce sufficient evidence to prove the existence of

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**Interpretation:** The court interpreted Section 9 of the IBC to require a high standard of proof

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**Application:** The court applied the ratio to the facts by finding that the OC's evidence was

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Mittal Po…
- **Respondents:** SUVARNA ADDITIVES…

## Timeline

- **2021-02-20 — Filing of Company…**: Company Petition (C.P. (IB) No. 95/MB/2022) filed by Mittal Polymers under Section 9 of…
- **2019-09-16 — Date of D…**: Date on which the Corporate Debtor stopped making payments towards the invoice dated…

## 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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