# In the matter of Aishwarya Technologies and Telecom Limited CP(IB) No. 18-9-HDB-2018

> NCLT judgment dated 2018-07-31. Citation: TCN-2018-NCLT-01035. SEI Trading India Private Limited, styling itself as the 'Operational Creditor,' filed a…

- **Court:** NCLT
- **Order date:** 31 Jul 2018
- **Citation:** TCN-2018-NCLT-01035
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aishwarya-technologies-and-telecom-limited-cpib-no-18-9-hdb-2018-921477e5

## Summary

### Background

SEI Trading India Private Limited, styling itself as the 'Operational Creditor,' filed a petition 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), seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Aishwarya Technologies and Telecom Limited, referred to as the 'Corporate Debtor.' The petition arises from a distributorship agreement between the parties dated 2016-04-01, where the respondent was appointed as a sole distributor in India. The petitioner claims that the respondent failed to make payments for invoices raised against purchase orders. The respondent raised objections, including disputes over the demand notice,

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## Facts

SEI Trading India Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Aishwarya Technologies and Telecom Limited (Corporate Debtor). The basis of the petition is a distributorship agreement dated 2016-04-01, where the Corporate Debtor was appointed as the sole distributor in India. The Operational Creditor claims that the Corporate Debtor failed to make payments for invoices raised against purchase orders. The Operational Creditor sent several reminders to the Corporate Debtor via emails between 2017-03-30 and 2017-07-11. The Operational Creditor issued a Demand Notice as per Form 3, which was received by the Corporate Debtor on

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## Issues and analysis

### Issue 1: Whether the demand notice issued by the petitioner is in accordance with Rule 5 of the Insolvency …

**Ratio:** A demand notice in Form-3 must be signed by the person authorized to act on behalf of the

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**Reasoning:** The court found that the demand notice was signed by Kan Kinoshita, the President and

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**Interpretation:** Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority

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**Application:** In this case, the demand notice was signed by the President and Director of the

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** SEI Trading India…
- **Respondents:** Aishwarya…
- **Advocates:** B. Ap…; P.Krishna…

## Timeline

- **2016-04-01 — Distributorship…**: The petitioner and the respondent entered into a Distributorship Agreement appointing the…
- **2017-03-30 — Reminders…**: The petitioner sent several reminders to the Corporate Debtor vide e-mails dated…

## 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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