# In the matter of Aarush Gems Pvt. Ltd. IB-18-(ND)-2018

> NCLT judgment dated 2018-06-14. Citation: TCN-2018-NCLT-01266. M/s Jindal Diamonds Pvt. Ltd., an operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 14 Jun 2018
- **Citation:** TCN-2018-NCLT-01266
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aarush-gems-pvt-ltd-ib-18-nd-2018-e3a8faca

## Summary

### Background

M/s Jindal Diamonds Pvt. Ltd., an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating the Corporate Insolvency Resolution Process (CIRP) against M/s Aarush Gems Pvt. Ltd., the corporate debtor, due to unpaid dues. The applicant claimed that they supplied gold and precious stones to the corporate debtor, raising an invoice of Rs. 4,87,749/- on 01.06.2017. The corporate debtor made a partial payment of Rs. 1,50,000/- on 02.08.2017, leaving an outstanding balance of Rs. 3,37,749/-. Despite repeated requests and a demand notice issued on 14.11.2017 under Section 8 of the IBC, the corporate debtor failed to pay the outstanding amount or respond to the notice.

## Facts

M/s Jindal Diamonds Pvt. Ltd. (the applicant/operational creditor) supplied gold and precious stones to M/s Aarush Gems Pvt. Ltd. (the respondent/corporate debtor). An invoice of Rs. 4,87,749/- was raised on 01.06.2017 for the supplied goods. The corporate debtor made a partial payment of Rs. 1,50,000/- on 02.08.2017, leaving an outstanding balance of Rs. 3,37,749/-. The corporate debtor confirmed the outstanding balance on 15.06.2017. Despite repeated requests and a demand notice issued on 14.11.2017 under Section 8 of the Insolvency and Bankruptcy Code, the corporate debtor failed to pay the outstanding amount or respond to the notice. The applicant filed an application under Section 9 of the IBC to initiate CIRP. The corporate debtor did not appear before the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating …

**Ratio:** Section 9(5) of the IBC states that the Adjudicating Authority shall, within fourteen

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**Reasoning:** The court noted that the corporate debtor failed to appear despite repeated service, and

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The court applied the provisions of Section 9(5) of the IBC to the facts of the

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## Parties

- **Judges:** DEEPTI M…
- **Appellants:** M/s Jindal…
- **Respondents:** M/s Aarush Gems…

## Timeline

- **2017-06-01 — Invoice R…**: Applicant raised an invoice of Rs. 4,87,749/- against the corporate debtor for supplied…
- **2017-06-15 — Confirmation of…**: The Corporate Debtor had signed the confirmation of accounts, duly affirming and signed…

## 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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