# In the matter of Veda Chem Private Limited IB-450(ND)-2020

> NCLT judgment dated 2022-12-23. Citation: TCN-2022-NCLT-00026. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 23 Dec 2022
- **Citation:** TCN-2022-NCLT-00026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/veda-chem-private-limited-ib-450nd-2020-3f275403

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, by M/s. MM Aqua Technologies Ltd. (Operational Creditor) to initiate Corporate Insolvency Resolution Process (CIRP) against Veda Chem Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted in making payments for the materials supplied as per the purchase order. The Corporate Debtor made a partial payment, but a significant amount remained unpaid. The Operational Creditor issued a demand notice, but the Corporate Debtor failed to respond or make the outstanding payments, leading to the filing of the application for CIRP.

## Facts

M/s. MM Aqua Technologies Ltd. (Operational Creditor) filed an application under Section 9 of the IBC, 2016, to initiate CIRP against Veda Chem Private Limited (Corporate Debtor) for non-payment of dues. The Operational Creditor supplied materials to the Corporate Debtor as per a purchase order dated 12.09.2017. An invoice of Rs. 16,62,266/- was raised on 15.09.2017, and the materials were duly supplied. The Corporate Debtor made a partial payment of Rs. 5,81,740/-, leaving a balance of Rs. 10,80,526/- unpaid. The Corporate Debtor admitted the debt via email dated 25.04.2018. The Operational Creditor raised a demand for Rs. 13,37,366/- (inclusive of interest) via a demand notice dated 30.01.2019. A cheque of Rs. 1,50,000/- issued by the Corporate Debtor on 22.05.2019

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC, 2016, filed by the Operational Creditor, M/s. …

**Ratio:** Section 9 of the IBC, 2016, allows an operational creditor to initiate CIRP against a

…

**Reasoning:** The court considered the documents submitted by the Operational Creditor, including the

…

**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

…

**Application:** The court found that the Operational Creditor had demonstrated the existence of

…

## Parties

- **Judges:** ATUL CHAT…; BachuVenkatBalaram…
- **Appellants:** M/s. MM Aqua…
- **Respondents:** Veda Chem Private…

## Timeline

- **2017-09-12 — Purchase…**: A Purchase Order was placed upon the…
- **2017-09-15 — Invoice I…**: An Invoice of Rs. 16,62,266/- was…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/veda-chem-private-limited-ib-450nd-2020-3f275403