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

> NCLT judgment dated 2018-12-10. Citation: TCN-2018-NCLT-00143. 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-00143
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ahz-interior-pvt-ltd-cp-ib-1330-mb-2017-5e514379

## 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/-. The Operational Creditor placed orders with the Corporate Debtor for RythmScapes Panels to be installed at various sites. Full advance payments were made, but the Corporate Debtor allegedly failed to deliver the goods as per the schedule. The Operational Creditor sent an email cancelling all orders and demanded a refund of the advances.

## Facts

Asona India Pvt. Ltd. (Operational Creditor) filed an application against AHZ Interior Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, claiming an outstanding operational debt of ₹18,31,688/-. The Operational Creditor placed orders for RythmScapes Panels with the Corporate Debtor, making full advance payments totaling ₹14,89,326/-. The orders included one dated 16.02.2016 for Symmetrics Development Services Pvt. Ltd. and another dated 17.02.2016 for Panchshil Realty & Developers Pvt. Ltd. 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. The Corporate Debtor claimed that the Operational

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## Issues and analysis

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

**Ratio:** The legal principle is that an operational debt is established when there is a claim in

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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' and 'default' under the IBC is

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**Application:** The ratio and reasoning were applied to the facts by noting that Asona India

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## Parties

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

## Timeline

- **2016-02-16 — Order Pl…**: Operational Creditor placed orders dated 16.02.2016 (with regard to an Order by…
- **2016-02-17 — Order Pl…**: Another Order dated 17.02.2016 (with Panchshil Realty & Developers Pvt. Ltd. for Trump…

## 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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