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

> NCLT judgment dated 2022-10-21. Citation: TCN-2022-NCLT-00622. Pearson India Education Services Private Limited, the Operational Creditor, filed a petition…

- **Court:** NCLT
- **Order date:** 21 Oct 2022
- **Citation:** TCN-2022-NCLT-00622
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/u-b-s-publishers-private-limited-ib-1095nd2020-ee61aab2

## 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) against U.B.S. Publishers Distributors Private Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default in payment of operational debt. The Respondent admitted the debt but contended that the exact amount was not crystalized and that the application was barred by Section 10A of the IBC, 2016.

## Facts

Pearson India Education Services Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against U.B.S. Publishers Distributors Private Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for books supplied based on purchase orders. Two agreements were executed on 06.04.2018: one for offline purchases and another for online purchases. The total debt claimed as of 15.07.2020 was Rs. 16,54,52,216/- (principal) plus Rs. 2,12,58,005/- (interest). A demand notice under Section 8 of the IBC was issued on 22.07.2020 and received on 27.07.2020. The Respondent contended that the application was

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## Issues and analysis

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

**Ratio:** Section 10A of the IBC, 2016 imposes a statutory bar on initiating CIRP for defaults

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**Reasoning:** The court examined the invoices raised for online purchases and their due dates. It found

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

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**Application:** In this case, the invoices for online purchases had due dates falling before

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## Parties

- **Judges:** SH. BACHU VENKAT…; SH. L. N.…
- **Appellants:** Pearson India…
- **Respondents:** U.B.S. Publishers…; M/s. U.B.S.…
- **Advocates:** Sumant…; Mohit C…; +2 more

## Timeline

- **2018-04-06 — Agreements E…**: Applicant and Respondent executed two agreements: sale and purchase agreement for offline…
- **2020-07-22 — Demand Notice…**: Applicant issued a Demand Notice under Section…

## 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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