# In the matter of Syska Led Lights Private Limited

> NCLT judgment dated 2024-10-08. Citation: TCN-2024-NCLT-00459. The case involves a Company Petition filed by Sunstar Industries, an Operational Creditor,…

- **Court:** NCLT
- **Order date:** 8 Oct 2024
- **Citation:** TCN-2024-NCLT-00459
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/syska-led-lights-private-limited-17bc1bfb

## Summary

### Background

The case involves a Company Petition filed by Sunstar Industries, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Syska LED Lights Private Limited, the Corporate Debtor. The Operational Creditor claimed an amount of Rs.7,70,95,748/- as outstanding, including principal and interest. The Corporate Debtor disputed the claim, alleging that the petition was based on falsehoods, misstatements, and suppression of material facts, citing disputes over the quality of goods supplied and the existence of debit notes. The Operational Creditor argued that the Corporate Debtor acknowledged the debt through emails and post-dated cheques, which were later dishonored.

## Facts

Sunstar Industries, an Operational Creditor, filed a Company Petition against Syska LED Lights Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. Sunstar Industries claimed an outstanding amount of Rs.7,70,95,748/-, including principal (Rs.7,19,45,494/-) and interest (Rs.51,50,254/-), based on invoices for goods supplied between March 2023 and July 2023. Syska LED Lights Private Limited acknowledged the debt through emails and issued post-dated cheques amounting to Rs.7,00,00,000/-, which were later dishonored. Syska LED Lights Private Limited argued that there were pre-existing disputes regarding the quality of goods supplied, leading to debit notes and a lack of a fixed payment timeline. Sunstar Industries denied the

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## Issues and analysis

### Issue 1: Whether the applicant has been able to establish the existence of operational debt and its default …

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

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**Reasoning:** The NCLT considered the invoices and emails presented by the Operational Creditor, which

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**Interpretation:** The existence of an operational debt is established when there is a clear

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**Application:** In this case, the NCLT found that the Operational Creditor had provided

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Sunstar Ind…
- **Respondents:** Syska LED Lights…

## Timeline

- **2017-01-01 — Business Comm…**: M/s Sunstar Industries and M/s Syska Led Lights Pvt. Ltd. began business with the…
- **2023-03-01 — Invoice P…**: The Corporate Debtor continues to be in default of a total of 25 invoices raised between…

## 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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