# In the matter of Advance Home and Personal Care Ltd. Company Petition No. IB-1023-ND-2018

> NCLT judgment dated 2019-09-05. Citation: TCN-2019-NCLT-01558. The case originates from an application filed by M/s Model Logistics Pvt. Ltd., an operational…

- **Court:** NCLT
- **Order date:** 5 Sept 2019
- **Citation:** TCN-2019-NCLT-01558
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/advance-home-and-personal-care-ltd-company-petition-no-ib-1023-nd-2018-958b8392

## Summary

### Background

The case originates from an application filed by M/s Model Logistics Pvt. Ltd., an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Advance Home & Personal Care Ltd., the corporate debtor. The applicant claims that the respondent failed to pay outstanding dues for freight services provided. The applicant sent a demand notice under Section 8 of the IBC, 2016, which the respondent allegedly failed to comply with or dispute. The respondent denied the existence of any outstanding payments, but the applicant claims the debt was acknowledged via email.

## Facts

M/s Model Logistics Pvt. Ltd. (the applicant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Advance Home & Personal Care Ltd. (the respondent). The applicant is an operational creditor providing freight services. The respondent approached the applicant for transportation of various materials to different destinations as per invoices. The applicant raised invoices from 2017-01-02 to 2017-04-04. The last invoice was raised on 2017-04-04. The applicant sent a demand notice dated 2018-05-11 under Section 8 of the IBC for Rs. 6,02,000/- along with interest @ 18% per annum from 2017-01-02. The respondent failed to pay the amount demanded and did not raise any

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## Issues and analysis

### Issue 1: Whether the application under Section 9 …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The court found that the applicant had filed the necessary documents and affidavit as

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** DEEPTI M…; HEMANT KUMAR…
- **Appellants:** M/S MODEL…
- **Respondents:** M/S ADVANCE HOME…
- **Advocates:** Aaditya A.…; Tarak K…

## Timeline

- **2017-01-02 — Default…**: The date on which the last invoice fell due,…
- **2017-04-04 — Last Invoice…**: The applicant raised the last…

## 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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