# In the matter of Ashok Transformers Pvt. Ltd. CP(IB) 219-9-NCLT-AHM-2018

> NCLT judgment dated 2018-07-25. Citation: TCN-2018-NCLT-01072. Darshan Y. Bhatt, an operational creditor, filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 25 Jul 2018
- **Citation:** TCN-2018-NCLT-01072
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ashok-transformers-pvt-ltd-cpib-219-9-nclt-ahm-2018-590d5079

## Summary

### Background

Darshan Y. Bhatt, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Ashok Transformers Private Limited, the corporate debtor. The petitioner claimed outstanding payment of Rs. 2,36,000/- for accounting and consulting fees. Notices issued to the respondent were returned undelivered.

## Facts

Darshan Y. Bhatt, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ashok Transformers Private Limited. The petitioner claimed that Ashok Transformers Private Limited owed him Rs. 2,36,000/- for accounting and consulting fees based on bill No. 621 dated 2016-03-09. The petitioner issued a demand notice on 2018-03-20, but the respondent did not respond. Notices sent to the respondent were returned undelivered. The petitioner also provided a letter from Bank of India stating that there was no credit entry of Rs. 2,36,000/- to the petitioner's account. The Adjudicating Authority noted that the respondent did not choose to give any reply to this petition.

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor, Darshan Y. Bhatt, under Section 9 of the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The Adjudicating Authority found that the petitioner had established the existence of

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP

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**Application:** The petitioner provided invoices, a demand notice, and a letter from Bank of

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Darshan Y.…
- **Respondents:** Ashok Transformers…

## Timeline

- **2016-03-09 — Bill Rai…**: Bill No. 621 raised for accounting and…
- **2018-03-20 — Demand Notice…**: Demand notice issued to Ashok Transformers…

## 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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