# In the matter of Ahuja Rolle Flour Mill Pvt. ltd. Company Petition No. IB-1323-ND-2019

> NCLT judgment dated 2019-09-19. Citation: TCN-2019-NCLT-01374. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 19 Sept 2019
- **Citation:** TCN-2019-NCLT-01374
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ahuja-rolle-flour-mill-pvt-ltd-company-petition-no-ib-1323-nd-2019-a092fff2

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by M/s Barflex Polyfilms Pvt. Ltd. (Operational Creditor) to initiate the Corporate Insolvency Resolution Process against M/s Ahuja Roller Flour Mill Pvt. Ltd. (Corporate Debtor). The applicant claimed that the corporate debtor defaulted on payments for supplied materials, evidenced by dishonored cheques.

## Facts

M/s Barflex Polyfilms Pvt. Ltd. (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 Ahuja Roller Flour Mill Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for the supply of packaging material. Eight invoices were issued to the respondent between 2017-11-28 and 2019-01-02. The Corporate Debtor made payments via five cheques totaling Rs. 22,82,607, but all cheques were dishonored due to 'Funds Insufficient'. The applicant issued notices under Section 138 of the Negotiable Instruments Act on 2019-05-06. A demand notice dated 2019-05-04 was sent under Section 8 of the IBC, demanding

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is complete …

**Ratio:** Section 9(5) of the Insolvency and Bankruptcy Code, 2016, specifies the requirements for

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**Reasoning:** The Tribunal found that the applicant had established a default in payment of the

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**Interpretation:** Section 9 of the IBC provides the procedure for an operational creditor to

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**Application:** The Tribunal applied Section 9(5) to the facts, noting that the applicant had

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## Parties

- **Judges:** DEEPTI M…; HEMANT KUMAR…
- **Appellants:** BARFLEX POLYFILMS…
- **Respondents:** M/s AHUJA ROLLER…

## Timeline

- **2005-01-24 — Incorporation of…**: M/s Barflex Polyfilms Private…
- **2010-04-01 — Incorporation of…**: M/s Ahuja Roller Flour Mill…

## 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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