# In the matter of U B S Publishers Distributors Private Limited (IB)-1095(ND)2020

> NCLT judgment dated 2022-10-21. Citation: TCN-2022-NCLT-00636. Pearson India Education Services Private Limited, the Operational Creditor, filed a petition…

- **Court:** NCLT
- **Order date:** 21 Oct 2022
- **Citation:** TCN-2022-NCLT-00636
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/u-b-s-publishers-distributors-private-limited-ib-1095nd2020-dedef839

## Summary

### Background

Pearson India Education Services Private Limited, the Operational Creditor, filed a petition 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 the Corporate Insolvency Resolution Process (CIRP) against M/s. U.B.S. Publishers Distributors Private Limited, the Corporate Debtor. The Operational Creditor claimed default in payment of operational debt. The Respondent contended that the application is barred by Section 10A of IBC, 2016.

## Facts

Pearson India Education Services Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. U.B.S. Publishers Distributors Private Limited (Corporate Debtor) for default in payment of operational debt. The Operational Creditor and Corporate Debtor had a long-standing relationship, where the Operational Creditor supplied books to the Corporate Debtor based on purchase orders. On 06.04.2018, they executed two agreements: one for offline purchases and another for online purchases. The total debt due and payable in default by the Corporate Debtor was Rs. 16,54,52,216/- as on 15.07.2020, excluding interest. The interest calculated till 15.07.2020

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## Issues and analysis

### Issue 1: Whether the present Application is …

**Ratio:** Section 10A of the IBC provides a bar on initiating CIRP for defaults arising during a

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**Reasoning:** The court examined the due dates of the invoices, particularly for online purchases, and

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**Interpretation:** Section 10A of the IBC is interpreted to mean that if the default occurred

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**Application:** Since the due dates for the invoices in question fell before 25.03.2020, the

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## Parties

- **Judges:** SH. BACHU VENKAT…; SH. L. N.…
- **Appellants:** Pearson India…
- **Respondents:** M/s. U.B.S.…

## Timeline

- **2018-04-06 — Agreements E…**: The Applicant and the Respondent executed two agreements: sale and purchase Agreement for…
- **2020-07-22 — Demand Notice…**: The Applicant issued a Demand Notice under Section 8 of the I&B Code, 2016 to the…

## 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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