# In the matter of A R Coating Solutions (India) Pvt. Ltd. CP No. 4719 (IB)-MB-C-IV-2018

> NCLT judgment dated 2019-09-20. Citation: TCN-2019-NCLT-01338. The case originates from a Company Petition filed under Section 9 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 20 Sept 2019
- **Citation:** TCN-2019-NCLT-01338
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/a-r-coating-solutions-india-pvt-ltd-cp-no-4719-ib-mb-c-iv-2018-cb52b82a

## Summary

### Background

The case originates from a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by ABC Infra Equipment Private Limited (the Operational Creditor) seeking to initiate Corporate Insolvency Resolution Process (CIRP) against A R Coating Solutions (India) Private Limited (the Corporate Debtor). The Operational Creditor claims that the Corporate Debtor failed to pay a sum of Rs. 11,34,230/- as principal amount with interest, as per invoices. The date of default is 08.06.2017.

## Facts

ABC Infra Equipment Private Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against A R Coating Solutions (India) Private Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted on a payment of Rs. 11,34,230/-. The debt arose from the supply of Boom Lifts 120 ft crane at site of the Corporate Debtor at Jaipur, Odisha. The date of default was 08.06.2017. The Corporate Debtor issued a letter dated 08.06.2017 acknowledging the outstanding amount. The Corporate Debtor also issued a cheque for Rs. 5,50,983/- which was dishonored. Another cheque for Rs. 11,34,232/- was also dishonored. A demand

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its …

**Ratio:** The existence of debt and default is established when the Corporate Debtor fails to make

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**Reasoning:** The Corporate Debtor failed to make payment of Rs. 11,34,230/- as per invoices, and the

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**Interpretation:** The IBC defines 'default' as non-payment of debt when whole or any part or

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**Application:** The Corporate Debtor's failure to pay the outstanding amount as per invoices,

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## Parties

- **Judges:** Rajasekha…; Ravikumar…; +1 more
- **Appellants:** ABC Infra…
- **Respondents:** A R Coating…

## Timeline

- **2012-10-12 — Incorporation of…**: A R Coating Solutions (India) Pvt. Ltd. was…
- **2017-03-11 — Invoice…**: Invoice Date: 11.03.2017, Invoice No. 573, Amount in Rs. 2,95,107/-, Amount Due and…

## Legal provisions

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

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