# In the matter of Sudhi Sachdev Vs. APPL Industries Ltd. CA (AT) No. 623-2018

> NCLAT judgment dated 2018-11-13. Citation: TCN-2018-NCLAT-00055. The appeal was filed by Sudhi Sachdev, the promoter of M/s Auto Décor Pvt. Ltd. (Corporate…

- **Court:** NCLAT
- **Order date:** 13 Nov 2018
- **Citation:** TCN-2018-NCLAT-00055
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sudhi-sachdev-vs-appl-industries-ltd-ca-9fcc1bfe

## Summary

### Background

The appeal was filed by Sudhi Sachdev, the promoter of M/s Auto Décor Pvt. Ltd. (Corporate Debtor), against an order dated August 2, 2018, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench. The Adjudicating Authority had admitted an application under Section 9 of the Insolvency and Bankruptcy Code (I&B Code) filed by the Respondent, APPL Industries Ltd. (Operational Creditor), and had passed an order of moratorium.

## Facts

Sudhi Sachdev, promoter of M/s Auto Décor Pvt. Ltd. (Corporate Debtor), filed an appeal against the order of the Adjudicating Authority (NCLT), New Delhi, which admitted an application under Section 9 of the I&B Code filed by APPL Industries Ltd. (Operational Creditor). The NCLT also passed a moratorium order. The Appellant argued that the Respondent had instituted cases under Section 138/441 of the Negotiable Instruments Act, 1881, which were pending in the court of Metropolitan Magistrate, Gurgaon. The Corporate Debtor had paid Rs.31,85,525/-, reducing the outstanding balance to Rs.34,25,251/-. The last payment was made on March 18, 2016. The Appellant contended that the Section 138 proceedings are civil cases for recovery of money, making the Section 9

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## Issues and analysis

### Issue 1: Whether the pendency of cases under Section 138/441 of the Negotiable Instruments Act, 1881, …

**Ratio:** The scheme of Section 7 stands in contrast with the scheme under Section 8 where an

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**Reasoning:** The court reasoned that the pendency of a case under Section 138/441 of the Negotiable

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**Interpretation:** The court interpreted that the pendency of cases under Section 138/441 of the

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**Application:** In this case, the court applied the ratio and reasoning to the specific facts

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Sudhi Sa…
- **Respondents:** M/s Auto Décor…; Appl Industries…

## Timeline

- **2018-08-02 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, passed an…
- **2016-03-18 — Last Payment by…**: The Corporate Debtor made the last payment of Rs.31,85,525/-, reducing the outstanding…

## 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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