# In the matter of Allwyn Furniture Private Limited CP (IB) No.298-Chd-Hry-2018

> NCLT judgment dated 2019-01-07. Citation: TCN-2019-NCLT-05319. The case pertains to an application filed by M/s Vardhman Trading Company, an operational…

- **Court:** NCLT
- **Order date:** 7 Jan 2019
- **Citation:** TCN-2019-NCLT-05319
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/allwyn-furniture-private-limited-cp-ib-no298-chd-hry-2018-e50a19b1

## Summary

### Background

The case pertains to an application filed by M/s Vardhman Trading Company, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Allwyn Furniture Private Limited, the corporate debtor. The operational creditor claimed an outstanding debt of ₹81,56,261/-. The corporate debtor was incorporated on 16.09.2011 and is engaged in the manufacturing of furniture. The operational creditor had been supplying CR Sheets, CR Coils, CR Steel Strips, and HR Coils to the corporate debtor since 30.11.2011.

## Facts

M/s Vardhman Trading Company, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Allwyn Furniture Private Limited, the corporate debtor, for an outstanding debt of ₹81,56,261/-. The corporate debtor was incorporated on 16.09.2011 and is engaged in furniture manufacturing. The operational creditor supplied CR Sheets, CR Coils, CR Steel Strips, and HR Coils to the corporate debtor since 30.11.2011. The operational creditor sent a demand notice on 10.07.2018, which was delivered to the corporate debtor and its directors. The last payment received by the operational creditor was ₹40,610/- on 13.10.2016. The corporate debtor did not issue any notice of dispute. The corporate debtor remained unrepresented due to

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## Issues and analysis

### Issue 1: Whether the operational creditor has met the requirements of Section 9 of the Insolvency and …

**Ratio:** Section 9 of the IBC outlines the requirements for an operational creditor to initiate

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**Reasoning:** The court found that the operational creditor had served a demand notice, provided copies

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**Interpretation:** Section 9 is interpreted to ensure that operational creditors have a clear and

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**Application:** The operational creditor complied with Section 9(3)(a) and 9(3)(b) by providing

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** M/s Vardhman…
- **Respondents:** Allwyn Furniture…

## Timeline

- **2011-11-30 — Supply of…**: M/s Vardhman Trading Company started supplying CR Sheets, CR Coils, CR Steel Strips, and…
- **2016-10-13 — Last Payment…**: Allwyn Furniture Private Limited made the last payment of ₹40,610/- to M/s Vardhman…

## 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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