# In the matter of Auto Mobiles Sterling (India) Pvt. Limited IB-1329-ND-2019

> NCLT judgment dated 2019-08-07. Citation: TCN-2019-NCLT-02062. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 7 Aug 2019
- **Citation:** TCN-2019-NCLT-02062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/auto-mobiles-sterling-india-pvt-limited-ib-1329-nd-2019-f05e462e

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 by Adbridge Communications India (P) Ltd, the Operational Creditor, against Automobiles Sterlind (India) Pvt. Ltd, the Corporate Debtor, due to a default in payment for services rendered. The Operational Creditor claimed an amount of Rs. 8,12,536/- along with interest, aggregating to Rs. 10,39,871/-, arising from purchase orders placed by the Corporate Debtor for 'space in Print Media'. Despite a partial payment of Rs. 200,000/-, the Corporate Debtor failed to pay the balance amount, leading the Operational Creditor to issue a demand notice under Section 8 of the IBC, 2016. The Corporate Debtor acknowledged the principal amount due but disputed the interest

…

## Facts

Abridge Communications India (P) Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 against Automobiles Sterlind (India) Pvt. Ltd (Corporate Debtor) due to non-payment of dues. The debt arose from purchase orders placed by the Corporate Debtor for 'space in Print Media'. The total claim was Rs. 10,39,871/-, including a principal amount of Rs. 8,12,536/- and interest of Rs. 2,27,335/-. The debt was stated to have fallen due on 2018-03-16. A partial payment of Rs. 200,000/- was made, but the balance remained unpaid. The Operational Creditor sent a demand notice on 2019-04-10 under Section 8 of the IBC, 2016. The Corporate Debtor responded on 2019-04-15, acknowledging the principal amount but disputing the

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC, 2016 should be admitted given the Corporate …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

…

**Reasoning:** The court noted that the Corporate Debtor admitted to a principal amount being due and in

…

**Interpretation:** Section 9 provides a mechanism for operational creditors to recover debts when

…

**Application:** The Corporate Debtor's admission of the principal amount being due and in

…

## Parties

- **Judges:** R. VARADH…; K.K. V…
- **Appellants:** Adbridge Communica…
- **Respondents:** Automobiles…

## Timeline

- **2018-03-16 — Debt Due…**: The debt of Rs. 8,12,536/- was…
- **2019-04-10 — Demand N…**: The Operational Creditor sent a demand notice to the Corporate Debtor under Section 8 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/auto-mobiles-sterling-india-pvt-limited-ib-1329-nd-2019-f05e462e