# In the matter of A & V Fashion Pvt. Ltd. IB-2387-(ND)-2019

> NCLT judgment dated 2020-02-03. Citation: TCN-2020-NCLT-02096. Manish Grover, the applicant and proprietor of Ayan Media Solutions, filed an application under…

- **Court:** NCLT
- **Order date:** 3 Feb 2020
- **Citation:** TCN-2020-NCLT-02096
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/a-v-fashion-pvt-ltd-ib-2387-nd-2019-1a12382d

## Summary

### Background

Manish Grover, the applicant and proprietor of Ayan Media Solutions, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the corporate insolvency resolution process (CIRP) against A & V Fashion Private Limited, the respondent. The application was based on the respondent's alleged default in clearing a debt of Rs. 8,36,275/-, including interest, owed to the applicant for outdoor advertising services provided. The applicant had extended out-of-home advertisement services to the respondent, displaying the Savarnika brand campaign on DMRC Line 3 metro pillars for five months, from 2017-06-04 to 2017-11-03, at an agreed rate. After completion of the campaign, the applicant raised invoices and sent them for payment, but

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## Facts

Manish Grover, proprietor of Ayan Media Solutions, provided outdoor advertising services to A & V Fashion Private Limited, displaying the Savarnika brand campaign on DMRC Line 3 metro pillars from 2017-06-04 to 2017-11-03. After the campaign, invoices were raised for Rs. 7,31,400/-, but no payments were received. Despite several emails and visits, the respondent failed to make the payment. A demand notice under Section 8 of the Insolvency and Bankruptcy Code was issued on 2019-04-06, but no reply or payment was received. Consequently, Manish Grover filed an application under Section 9 of the IBC to initiate CIRP against A & V Fashion Private Limited for a total debt of Rs. 8,36,275/-, including interest. The respondent did not make any representation, and was

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## Issues and analysis

### Issue 1: Whether the Respondent defaulted in paying …

**Ratio:** The principle that a debt is considered defaulted when it is due and payable but has not

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**Reasoning:** The court reviewed the invoices and emails submitted by the Applicant, which showed that

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**Interpretation:** The legal interpretation is that if a debt is proven to be owed and no payment

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**Application:** The court applied this principle to the facts, noting that the invoices and

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** Manish G…
- **Respondents:** A & V Fashion…

## Timeline

- **2017-06-04 — Campaign…**: Savarnika brand campaign on DMRC…
- **2017-11-03 — Campaign…**: Savarnika brand campaign on DMRC…

## 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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