# In the matter of Ad Mart Private Limited IBA-140-2020

> NCLT judgment dated 2021-01-18. Citation: TCN-2021-NCLT-03290. The case involves an application filed by M/s. ACI Wonderwood Products, an Operational…

- **Court:** NCLT
- **Order date:** 18 Jan 2021
- **Citation:** TCN-2021-NCLT-03290
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ad-mart-private-limited-iba-140-2020-e0119c4d

## Summary

### Background

The case involves an application filed by M/s. ACI Wonderwood Products, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Ad Mart Private Limited, the Corporate Debtor. The Operational Creditor claimed a sum of Rs.48,06,837/- as due and payable by the Corporate Debtor for the supply of plywood materials from November 2012 to March 2014. The Corporate Debtor allegedly made only partial payments, and despite repeated reminders, the balance amount remained unpaid. The Operational Creditor submitted documents including purchase orders, invoices, mail correspondences, debit notes, and bank certificates to prove the existence of the operational debt. The Corporate

…

## Facts

M/s. ACI Wonderwood Products (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Ad Mart Private Limited (Corporate Debtor). The Operational Creditor claimed Rs.48,06,837/- as outstanding for plywood materials supplied between November 2012 and March 2014. The Corporate Debtor made partial payments but failed to clear the dues despite reminders. The Operational Creditor submitted purchase orders, invoices, mail correspondences, debit notes, and bank certificates as evidence. The Corporate Debtor issued a cheque for Rs.10,00,000/-, which was dishonored. Subsequently, another cheque dated 26.07.2017 for Rs.48,06,837/- was also dishonored with the

…

## Issues and analysis

### Issue 1: Whether a dishonoured cheque amounts to an acknowledgment of debt under Section 18 of the …

**Ratio:** A cheque, even if dishonoured, can amount to an acknowledgment of debt, provided it was

…

**Reasoning:** The Tribunal relied on judgments from the High Courts of Gujarat, Patna, and Madras, as

…

**Interpretation:** Section 18 of the Limitation Act states that if, before the expiration of the

…

**Application:** In this case, the Corporate Debtor issued a cheque before the expiry of three

…

## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** M/s. ACI Wonderwoo…
- **Respondents:** M/s. Ad Mart Pvt…

## Timeline

- **2012-12-01 — Corporate Debtor…**: The Corporate Debtor approached the Operational Creditor for the supply of plywood…
- **2012-11-01 — Supply P…**: The Operational Creditor supplied material to the Corporate Debtor from November 2012…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/ad-mart-private-limited-iba-140-2020-e0119c4d