# In the matter of Kay Pan Fragrance Private Limited IB-692-(ND)-2021

> NCLT judgment dated 2022-05-13. Citation: TCN-2022-NCLT-04809. The case involves an application filed by GLS Films Industries Private Limited, the operational…

- **Court:** NCLT
- **Order date:** 13 May 2022
- **Citation:** TCN-2022-NCLT-04809
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/kay-pan-fragrance-private-limited-ib-692-nd-2021-b2e24d6a

## Summary

### Background

The case involves an application filed by GLS Films Industries Private Limited, the operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Kay Pan Fragrance Private Limited, the corporate debtor.

## Facts

GLS Films Industries Private Limited, the operational creditor, filed an application under Section 9 of the IBC.

The operational creditor claimed that the corporate debtor defaulted on payments.

The operational creditor supplied printed laminated paper roll to the corporate debtor.

The operational creditor raised 68 invoices amounting to Rs. 16,86,14,367/-.

The total outstanding operational debt is Rs. 8,52,04,134/-.

The corporate debtor acknowledged the outstanding amount of Rs. 12,51,89,460/- in a letter dated 05.10.2021.

The operational creditor sent a demand notice dated 16.10.2021.

The corporate debtor paid Rs. 3,99,85,326/- to the operational creditor after receiving the demand notice.

The corporate debtor claimed that the dispute was settled prior to the application.

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** The application can be admitted if there is a default and the requirements of Section 9

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**Reasoning:** The corporate debtor admitted to the default and was unable to make payments. The

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**Interpretation:** Section 9 allows for the initiation of

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**Application:** The Tribunal admitted the

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## Parties

- **Judges:** DHARMINDER…; SUMITAPURKA…
- **Appellants:** M/s GLS Films…
- **Respondents:** M/s Kay Pan…
- **Other parties:** Shashi Bhushan…

## Timeline

- **2022-05-13 — Order Del…**: Order was delivered on…

## 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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