# In the matter of Atul Vatika Developers Pvt. Ltd. (IB)-1828-ND-2019

> NCLT judgment dated 2019-10-11. Citation: TCN-2019-NCLT-01028. The case involves an operational creditor, Mrs. Kabita Barik, Mr. Jogendra Nmath Barik, and Mr.…

- **Court:** NCLT
- **Order date:** 11 Oct 2019
- **Citation:** TCN-2019-NCLT-01028
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/atul-vatika-developers-pvt-ltd-ib-1828-nd-2019-76eb5672

## Summary

### Background

The case involves an operational creditor, Mrs. Kabita Barik, Mr. Jogendra Nmath Barik, and Mr. Amit Barik, filing a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Atul Vatika Developers Pvt Ltd, the corporate debtor. The operational creditors and the corporate debtor had entered into an agreement to sell a property. The corporate debtor failed to hand over the property, leading to the cancellation of the agreement. The corporate debtor agreed to refund the amount paid in advance but failed to do so.

## Facts

Mrs. Kabita Barik, Mr. Jogendra Nmath Barik, and Mr. Amit Barik (operational creditors) entered into an agreement with Atul Vatika Developers Pvt Ltd (corporate debtor) for the sale of a property. The operational creditors paid Rs. 48,51,000/- to the corporate debtor. The corporate debtor failed to hand over the property, leading to the cancellation of the agreement on 2018-12-01. The corporate debtor agreed to refund the amount but failed to do so. The operational creditors served a demand notice on 2019-03-20 under Section 8 of the Insolvency & Bankruptcy Code, 2016. The corporate debtor issued 7 post-dated cheques, which were dishonored due to 'Account Blocked' and 'Insufficient Funds'. The operational creditors filed a petition under Section 9 of the IBC in

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor for initiation of CIRP is maintainable under …

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

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**Reasoning:** The court noted that the operational creditor had provided sufficient evidence of the

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** (RETD) RAKESH…; SUMITAPURKA…
- **Appellants:** Kabita…
- **Respondents:** Atul Vatika…

## Timeline

- **2018-12-01 — Agreement to Sell…**: The agreement to sell between the operational creditors and the corporate debtor was…
- **2019-03-20 — Demand Notice…**: The operational creditors served a demand notice on the corporate debtor under Section 8…

## 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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