# In the matter of Sri Jawahar Lal Luthra Vs. Ganesh Rice and General Industries & Anr.  CA (AT) (Insolvency) No. 945 of 2019

> NCLAT judgment dated 2019-09-25. Citation: TCN-2019-NCLAT-00246. This is an appeal filed by Sri Jawahar Lal Luthra against the order dated 19th August 2019…

- **Court:** NCLAT
- **Order date:** 25 Sept 2019
- **Citation:** TCN-2019-NCLAT-00246
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sri-jawahar-lal-luthra-vs-ganesh-rice-and-general-industries-anr-ca-7045f91c

## Summary

### Background

This is an appeal filed by Sri Jawahar Lal Luthra against the order dated 19th August 2019 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, which admitted the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 filed by Ganesh Rice & General Industries (Operational Creditor). The appellant challenges the admission of the application, arguing that there is no 'debt' payable by the 'Corporate Debtor' and that the application under Section 9 was not maintainable.

## Facts

Ganesh Rice & General Industries (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s. Umachi Foods & Commodities Pvt. Ltd. (Corporate Debtor). The application was admitted by the Adjudicating Authority. Sri Jawahar Lal Luthra, a director of the Corporate Debtor, filed an appeal against the admission order. The appellant argued that there was no 'debt' payable by the Corporate Debtor and that the application under Section 9 was not maintainable. The Operational Creditor had issued a demand notice under Section 8(1) to the Corporate Debtor, but no reply was given. The Corporate Debtor had issued a cheque in favor of the Operational Creditor, which later bounced. The Corporate Debtor claimed that the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in admitting the application under Section 9 of the …

**Ratio:** The Adjudicating Authority can admit an application under Section 9 of the Insolvency and

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**Reasoning:** The court found that the Operational Creditor had issued a demand notice under Section

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**Interpretation:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational

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**Application:** The court applied the provisions of Section 9 to the facts of the case and

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Jawahar Lal…
- **Respondents:** M/s. Umachi Foods…; Ganesh Rice and…

## Timeline

- **2019-08-19 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi admitted the…
- **2018-07-11 — Notice issued to…**: Notice was issued to the 'Corporate Debtor' and the Directors including ‘Mr. Jawahar Lal…

## 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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