# In the matter of AHZ Interior Pvt. Ltd. C.P. (IB)-1330-(MB)-2017

> NCLT judgment dated 2018-12-10. Citation: TCN-2018-NCLT-00138. The case involves an application filed by Asona India Pvt. Ltd., the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 10 Dec 2018
- **Citation:** TCN-2018-NCLT-00138
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ahz-interior-pvt-ltd-cp-ib-1330-mb-2017-13851a45

## Summary

### Background

The case involves an application filed by Asona India Pvt. Ltd., the Operational Creditor, against AHZ Interior Pvt. Ltd., the Operational Debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016. The Operational Creditor claimed an outstanding operational debt of ₹18,31,688/- from the Corporate Debtor, arising from unpaid invoices for goods supplied. The Operational Creditor had placed orders with the Corporate Debtor for RythmScapes Panels to be installed at various sites and made advance payments. However, the Corporate Debtor allegedly failed to deliver the goods as per the agreed schedule, leading to the Operational Creditor cancelling the orders and demanding a refund of the advance payments. The Corporate Debtor refuted the allegations, claiming

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## Facts

Asona India Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against AHZ Interior Pvt. Ltd. (Corporate Debtor) for an outstanding operational debt of ₹18,31,688/-. The debt arose from orders placed by the Operational Creditor for RythmScapes Panels, with advance payments made. The orders included one dated 16.02.2016 for EMC Symmetrics and another dated 17.02.2016 for Trump Towers. The Corporate Debtor allegedly failed to deliver the goods as per the agreed schedule. The Operational Creditor sent an email on 30.03.2017 cancelling all orders and demanding a refund. A demand notice under Section 8 of the Code was sent on 04.07.2017. The Corporate Debtor refuted the allegations, claiming that the

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## Issues and analysis

### Issue 1: Whether the Operational Debt as claimed by …

**Ratio:** The existence of an operational debt is established when there is a claim in respect of

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**Reasoning:** The court reasoned that the Operational Creditor had placed orders and made advance

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**Interpretation:** The interpretation of 'operational debt' under the IBC includes not only the

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**Application:** In this case, the Operational Creditor's claim for a refund of the advance

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Asona India Pvt.…
- **Respondents:** AHZ Interior Pvt.…

## Timeline

- **2016-02-16 — Order Pla…**: The Operational Creditor placed orders dated 16.02.2016 (with regard to an Order by…
- **2016-02-17 — Order Pla…**: The Operational Creditor placed another Order dated 17.02.2016 (with Panchshil Realty &…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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