# In the matter of Alam Industries (I) Limited (Aurum Jewels Ltd.) CP-1079-IB-2018

> NCLT judgment dated 2019-04-01. Citation: TCN-2019-NCLT-04227. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Apr 2019
- **Citation:** TCN-2019-NCLT-04227
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alam-industries-i-limited-aurum-jewels-ltd-cp-1079-ib-2018-5c272e59

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by operational creditors against a corporate debtor, Alam Industries (I) Limited, for outstanding dues. The operational creditors, who are family members, had entered into a rental agreement with the corporate debtor for a property they jointly owned. The corporate debtor allegedly defaulted on rent payments, leading to the insolvency application.

## Facts

The Operational Creditors, who are family members, entered into a Rental Agreement dated 2012-04-21 with the Corporate Debtor, Alam Industries (I) Ltd. alias Aurum Jewels Limited, for a property owned jointly by the three family members. The property was leased to the Corporate Debtor for 10 years with a monthly rent of Rs.1,15,000/- and an 8% yearly enhancement. The Corporate Debtor paid rent regularly until 2015-05-01. Thereafter, the rent was not paid as per the agreement. The outstanding amount was Rs.38,25,992/- as of 2018-06-01, after deducting an advance of Rs.20,00,000/-. The Operational Creditors issued a demand notice on 2018-06-11 under Section 8 of the I&B Code, 2016. The Corporate Debtor's counsel raised objections regarding the rent receipt book, mode

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of the outstanding debt to the Operational …

**Ratio:** The Corporate Debtor is obligated to pay the outstanding debt to the Operational

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**Reasoning:** The court found that the Corporate Debtor failed to provide sufficient evidence to

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**Interpretation:** The court interpreted the Rental Agreement and the I&B Code to mean that

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

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Gagan B…
- **Respondents:** Alam Industries…; ALAM INDUSTRIES…

## Timeline

- **2012-04-21 — Rental Agr…**: Operational Creditors and Corporate…
- **2015-05-01 — Last Rent P…**: Corporate Debtor last paid…

## 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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