An Application 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.

In this case before the National Company Law Tribunal (Kolkata Bench), the Operational Creditor, Polymet SA (S) Pte. Ltd., filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Shree Tel Fab Industries Pvt. Ltd. for non-payment of dues arising from supply of plastic raw materials. The Tribunal found that the Corporate Debtor had repeatedly acknowledged the debt through letters, repayment plans, and a formal settlement agreement, but failed to make payments, thereby establishing “default.” The defenses raised—such as limitation, defective goods, forgery, and non-service of demand notice—were rejected as inconsistent, unsupported, or afterthoughts, especially in light of clear admissions of liability. The Tribunal held that the debt was valid, within limitation due to continuous acknowledgments, and free from any genuine pre-existing dispute. Accordingly, the application was admitted, CIRP was initiated, moratorium under Section 14 was imposed, and an Interim Resolution Professional (IRP) was appointed to take over the management of the Corporate Debtor.