# 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-01856. 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-01856
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adarsh-global-traders-services-pvt-ltd-cpib-no-350-9-hdb-2019-ebf04c25

## 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 for a claim of Rs. 8,98,91,694. Notices were sent to the respondent on multiple occasions, and a notice intimating the next hearing date was published. The respondent was declared ex-parte after sufficient notice.

## Facts

Vedika Steels Private Limited (Operational Creditor) filed an application under Section 9 of the IBC, 2016, against Adarsh Global Trades & Services Pvt Ltd (Corporate Debtor) for a claim of Rs. 8,98,91,694. Notices were sent to the respondent, and the respondent was declared ex-parte. The operational creditor primarily relied on a ledger account statement from its own books. The Adjudicating Authority noted a pending application (IA No. 323/2019) involving fraudulent transactions where both parties were arrayed as respondents. The operational creditor failed to furnish invoices, purchase orders, or any acknowledgment from the corporate debtor to prove the debt. The operational creditor also failed to provide any documentary evidence issued by the corporate debtor

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has provided sufficient evidence to prove the existence of an …

**Ratio:** The burden of proof lies on the operational creditor to establish the existence of an

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**Reasoning:** The Adjudicating Authority found that the Operational Creditor failed to provide

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

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**Application:** In this case, the Operational Creditor failed to provide the necessary

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## Parties

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

## Timeline

- **2016-01-01 — Enactment of…**: The Insolvency and…
- **2019-06-03 — Notice to Res…**: Notice was sent to the…

## 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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