# In the matter of AVK Automall Pvt. Ltd. CP No. 2924-I&BP-2018

> NCLT judgment dated 2018-11-06. Citation: TCN-2018-NCLT-00374. Beli Sharma and Company filed a Company Petition under Section 9 of the IBC, 2016, seeking to…

- **Court:** NCLT
- **Order date:** 6 Nov 2018
- **Citation:** TCN-2018-NCLT-00374
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/avk-automall-pvt-ltd-cp-no-2924-ibp-2018-4dbae478

## Summary

### Background

Beli Sharma and Company filed a Company Petition under Section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against AVK Automall Private Limited. The petitioner alleged that the corporate debtor defaulted on a payment of Rs. 1,19,700/- due on 24.09.2015.

## Facts

Beli Sharma and Company (the Petitioner) filed a petition against AVK Automall Private Limited (the Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Petitioner claimed that the Corporate Debtor defaulted on a payment of Rs. 1,19,700/- due on 24.09.2015. This amount was related to an invoice dated 24.08.2015 for professional services rendered by the Petitioner to the Corporate Debtor. The Petitioner issued a demand notice under Section 8 of the Code on 03.04.2018, but received no reply from the Corporate Debtor. The Respondent's counsel admitted the debt and default and did not object to the admission of the petition. The petitioner also filed an affidavit stating that no communication has been received from the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is in compliance with the provisions of …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) outlines the procedure for initiating the

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**Reasoning:** The court was satisfied that the application filed by the Operational Creditor complied

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**Interpretation:** Sections 8 and 9 of the IBC are interpreted to mean that if an operational

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**Application:** In this case, the court found that the Operational Creditor had demonstrated

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Beli Sharma and…
- **Respondents:** AVK Automall…

## Timeline

- **2015-08-24 — Invoice…**: Petitioner raised Invoice dated 24.08.2015 for Rs. 1,19,700/- on the Corporate Debtor for…
- **2015-09-24 — Default…**: Corporate Debtor committed default on…

## 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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