# In the matter of Abu Estate Private Limited CP-669-(IB)-CB-2017

> NCLT judgment dated 2018-03-26. Citation: TCN-2018-NCLT-01639. The case involves an application filed by the Operational Creditor, M/s. Within, under Section…

- **Court:** NCLT
- **Order date:** 26 Mar 2018
- **Citation:** TCN-2018-NCLT-01639
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abu-estate-private-limited-cp-669-ib-cb-2017-d9f303dd

## Summary

### Background

The case involves an application filed by the Operational Creditor, M/s. Within, under Section 9 of the Insolvency and Bankruptcy Code, 2016, r/w Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Abu Estate Private Limited. The Operational Creditor claimed an outstanding debt of Rs. 9,17,392/- as of 19.05.2017, comprising principal and interest. The Corporate Debtor had placed three separate purchase orders for furnishing/refurbishing its hotel rooms. The Operational Creditor raised invoices for the work and materials, but two invoices remained unpaid. The Corporate Debtor issued four cheques totaling Rs. 4,00,000/- towards part

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## Facts

M/s. Within, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Abu Estate Private Limited, the Corporate Debtor. The Operational Creditor claimed an outstanding debt of Rs. 9,17,392/- as of 19.05.2017, comprising Rs. 5,80,630/- as principal and Rs. 3,36,762/- as interest. The debt arose from three purchase orders placed by the Corporate Debtor for furnishing/refurbishing its hotel rooms. The Operational Creditor raised invoices for the work and materials supplied. The Corporate Debtor issued four cheques totaling Rs. 4,00,000/- towards part payment, but these cheques were returned unpaid due to 'insufficient fund/stoppage of payments'.

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has complied with the requirements of Section 9 of the Insolvency …

**Ratio:** Section 9(3)(b) & (c) of the I&B Code, 2016, requires the Operational Creditor to

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**Reasoning:** The court noted that the Operational Creditor had filed an affidavit deposing that there

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**Interpretation:** Section 9 of the I&B Code outlines the procedure for an operational

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**Application:** The Operational Creditor submitted the required affidavit and bank certificate,

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Respondents:** ABU ESTATES PVT…

## Timeline

- **2017-12-07 — Hearing…**: Counsels for the Operational Creditor and Corporate Debtor were present. Papers were…
- **2017-12-18 — Hearing…**: Counsel for the Corporate Debtor was present and submitted that his client was willing to…

## 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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