# In the matter of Abag HI-Tech Education Limited IB-413-(ND)-2020

> NCLT judgment dated 2020-06-12. Citation: TCN-2020-NCLT-01175. The case involves an application filed by M/s R.G. Luthra & Co. under Section 9 of the…

- **Court:** NCLT
- **Order date:** 12 Jun 2020
- **Citation:** TCN-2020-NCLT-01175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abag-hi-tech-education-limited-ib-413-nd-2020-29313513

## Summary

### Background

The case involves an application filed by M/s R.G. Luthra & Co. under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s ABAG Hi-Tech Education Limited. The applicant, a chartered accountancy firm, claims that the respondent defaulted on payments for statutory audit services. The respondent acknowledged the debt but failed to make payments despite repeated assurances and requests for more time.

## Facts

M/s R.G. Luthra & Co., a chartered accountancy firm, provided statutory audit services to M/s ABAG Hi-Tech Education Limited. The respondent engaged the applicant for audit tasks, issuing an appointment letter on 2014-05-15. The applicant provided consent and fulfilled the criteria under Sections 139 and 141 of the Companies Act, 2013. The applicant conducted audits for the year 2012-13 and raised an invoice of Rs. 47,753 on 2014-03-31. The respondent failed to pay this amount, leading the applicant to send a letter on 2014-10-15. Several reminder letters were sent between 2015 and 2016. The respondent acknowledged the debt in a letter dated 130.08.2016, assuring payment within 15 days, but failed to do so. The applicant issued a letter on 2017-08-18, emphasizing

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## Issues and analysis

### Issue 1: Whether the operational creditor, M/s R.G. Luthra & Co., has established the existence of a …

**Ratio:** The legal principle is that under Section 9 of the Insolvency and Bankruptcy Code, 2016,

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**Reasoning:** The court reasoned that the operational creditor presented sufficient evidence, including

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**Interpretation:** The interpretation of Section 9 involves determining whether the operational

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**Application:** In this case, the ratio and reasoning were applied to the facts presented. The

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** R.G. Luthra…
- **Respondents:** ABAG Hi-Tech…

## Timeline

- **2014-05-15 — Appointment…**: Respondent issued an appointment letter…
- **2014-07-22 — Consent L…**: Applicant submitted consent…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 141 — Restrictions on bankrupt](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-141)

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