# In the matter of Waaman Products Pvt. Ltd. IB-1048 -(PB)-2020

> NCLT judgment dated 2022-08-17. Citation: TCN-2022-NCLT-01353. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 17 Aug 2022
- **Citation:** TCN-2022-NCLT-01353
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/waaman-products-pvt-ltd-ib-1048-pb-2020-e062df83

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by New Pearl Vitrified Pvt. Ltd. (Operational Creditor) against Waaman Products Pvt. Ltd. (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor and Corporate Debtor had a long-term business relationship where the Corporate Debtor purchased vitrified tiles from the Operational Creditor to sell further. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for purchased orders. The Corporate Debtor raised objections, stating that the material supplied by the Operational Creditor was

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## Facts

New Pearl Vitrified Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Waaman Products Pvt. Ltd. (Corporate Debtor) for initiation of CIRP. The Operational Creditor and Corporate Debtor had a business relationship where the Corporate Debtor purchased vitrified tiles from the Operational Creditor. The Operational Creditor claimed that the Corporate Debtor placed purchase orders on 2016-07-28, 2016-12-14, and 2016-12-14 for goods worth Rs. 69,16,058. The Corporate Debtor made a partial payment of Rs. 3,38,900 through a cheque, which was dishonored on 2018-10-10, leading to proceedings under Section 138 of the Negotiable Instrument Act. The Operational Creditor sent a demand notice dated 2020-02-03

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** The ratio is based on the principles of Section 9 of the Insolvency and Bankruptcy Code,

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**Reasoning:** The court considered the Corporate Debtor's objections regarding the quality of goods

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**Interpretation:** The interpretation involves understanding the scope of Section 9 of the IBC and

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**Application:** The ratio and reasoning were applied to the specific facts of the case by

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## Parties

- **Judges:** Sh. Dharminder…; BINOD KUMAR…
- **Appellants:** New Pearl…
- **Respondents:** Waaman Products…

## Timeline

- **2016-07-28 — Purchase…**: Corporate Debtor placed…
- **2016-12-14 — Purchase…**: Corporate Debtor placed…

## 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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