# In the matter of Adarsh Global Traders & Services Pvt. Ltd. CP(IB) No. 350-9-HDB-2019

> NCLT judgment dated 2019-08-22. Citation: TCN-2019-NCLT-01850. Vedika Steels Private Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 22 Aug 2019
- **Citation:** TCN-2019-NCLT-01850
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adarsh-global-traders-services-pvt-ltd-cpib-no-350-9-hdb-2019-a93af7d5

## Summary

### Background

Vedika Steels Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Adarsh Global Trades & Services Pvt Ltd, claiming Rs. 8,98,91,694. Notices were sent to the respondent on multiple occasions, and a notice intimating the next hearing date was published in the paper. The respondent was set as ex-parte on 31.07.2019.

## Facts

Vedika Steels Private Limited, acting as the Operational Creditor, initiated proceedings against Adarsh Global Trades & Services Pvt Ltd, the Corporate Debtor, under Section 9 of the IBC, seeking to recover Rs. 8,98,91,694. Vedika Steels failed to provide sufficient evidence, such as invoices or acknowledgments from Adarsh Global Trades, to substantiate the debt. The application was rejected because Vedika Steels only presented its ledger account and did not furnish any independent evidence or acknowledgment from the Corporate Debtor. Another application (IA No. 323/2019) was pending, where both parties were respondents, involving allegations of fraudulent transactions.

## Issues and analysis

### Issue 1: Whether the Operational Creditor, Vedika Steels Private Limited, provided sufficient evidence to …

**Ratio:** An operational creditor must furnish sufficient evidence, including invoices, purchase

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**Reasoning:** The Adjudicating Authority found that Vedika Steels only relied on its ledger account and

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**Interpretation:** Section 9 of the IBC requires an operational creditor to provide concrete

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**Application:** In this case, Vedika Steels failed to meet the evidentiary requirements of

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Vedika Steels Pvt…
- **Respondents:** Adarsh Global…

## Timeline

- **2019-06-03 — Notice to Res…**: Notice sent to the Respondent, Adarsh…
- **2019-06-25 — Notice to Res…**: Another notice sent to the Respondent,…

## 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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