# In the matter of Anil Duggal Vs. Roofs & Ceilings Pvt. Ltd. CA(AT)(Ins) No. 189 of 2020

> NCLAT judgment dated 2020-03-02. Citation: TCN-2020-NCLAT-00361. This case arises from an appeal against an order passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 2 Mar 2020
- **Citation:** TCN-2020-NCLAT-00361
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/anil-duggal-vs-roofs-ceilings-pvt-ltd-ca-71f40e6b

## Summary

### Background

This case arises from an appeal against an order passed by the National Company Law Tribunal (NCLT), New Delhi, which admitted a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Duggal Associates Private Ltd. The operational creditor, Roofs & Ceilings Pvt. Ltd., claimed unpaid dues for the supply of roofing material. The NCLT admitted the application, leading Duggal Associates to appeal the decision.

## Facts

Duggal Associates Private Ltd. (Corporate Debtor) engaged Roofs & Ceilings Pvt. Ltd. (Operational Creditor) for the supply of roofing materials for a project in Bhadohi, UP. Roofs & Ceilings supplied the materials, raising invoices totaling ₹1,66,57,721.95. Duggal Associates made partial payments, leaving an outstanding balance of ₹28,26,817.95. Despite repeated requests and an email admitting the delay, Duggal Associates failed to clear the dues. Roofs & Ceilings issued a demand notice under Section 8(1) of the Insolvency and Bankruptcy Code for ₹42,30,671.90, including interest. The demand notice was served, but Duggal Associates neither replied nor made the payment. Roofs & Ceilings filed an application under Section 9 of the IBC, which the NCLT

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## Issues and analysis

### Issue 1: Whether the impugned order passed by the NCLT was justified in admitting the application under …

**Ratio:** The Adjudicating Authority is empowered to admit an application under Section 9 of the

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**Reasoning:** The NCLAT reasoned that the NCLT's decision was justified because the operational debt

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate corporate

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**Application:** In this case, the NCLAT applied the ratio to the facts by noting that the

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## Parties

- **Judges:** Venugop…; V. P. S…
- **Appellants:** Anil Du…
- **Respondents:** Duggal Associates…; Roofs and…

## Timeline

- **2016-10-18 — Purchase…**: Duggal Associates issued purchase order No. 37 to Roofs & Ceilings for supply of roofing…
- **2018-01-05 — Completion Cer…**: Duggal Associates issued a completion certificate for the job work done by Roofs &…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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