# In the matter of Union Quality Plastics Limited CP(IB)-1438-MB-2020

> NCLT judgment dated 2023-03-17. Citation: TCN-2023-NCLT-04168. The case involves an application filed by Sumiran Masterbatch Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 17 Mar 2023
- **Citation:** TCN-2023-NCLT-04168
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/union-quality-plastics-limited-cpib-1438-mb-2020-709472fa

## Summary

### Background

The case involves an application filed by Sumiran Masterbatch Private Limited, the Operational Creditor, against Union Quality Plastics Limited, the Corporate Debtor, under Section 9 of the IBC, 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for plastic tarpaulin supplied from 2018 to 2019, leading to an outstanding amount of ₹1,21,00,722/- plus interest. The Corporate Debtor contested the application, citing non-service of demand notice, lack of pecuniary jurisdiction, and statutory bar under Section 10A of the Code. The Corporate Debtor also argued that certain payments and dues from the Operational Creditor were not accounted for, reducing the principal sum below the threshold limit.

## Facts

Sumiran Masterbatch Private Limited (Operational Creditor) filed an application against Union Quality Plastics Limited (Corporate Debtor) under Section 9 of the IBC, 2016. The Operational Creditor supplied plastic tarpaulin to the Corporate Debtor from January 13, 2018, to January 1, 2019. The outstanding amount payable by the Corporate Debtor was ₹1,21,00,722/- (principal) plus interest. The Operational Creditor issued a demand notice dated November 2, 2020, which was returned unclaimed. The Corporate Debtor claimed that the application was not maintainable due to non-service of demand notice, lack of pecuniary jurisdiction, and statutory bar under Section 10A of the Code. The Corporate Debtor also claimed that certain payments and dues from the Operational Creditor

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## Issues and analysis

### Issue 1: Whether the application is maintainable under Section 9 of the IBC, 2016, considering the Corporate …

**Ratio:** The service of notice at the registered office address and via email to addresses

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**Reasoning:** The court found that the applicant served the notice at the registered office address and

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**Interpretation:** The court interpreted the rules regarding service of notice and the

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**Application:** The court applied the ratio to the facts of the case, finding that the notice

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Sumiran Masterbatc…
- **Respondents:** Union Quality…

## Timeline

- **2018-01-13 — Goods Sup…**: Goods were supplied from…
- **2019-01-01 — Goods Sup…**: Goods were supplied from…

## 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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