# In the matter of Berry Auto Ancillaries (P) Ltd. IB-722-ND-2019

> NCLT judgment dated 2019-09-23. Citation: TCN-2019-NCLT-01304. R.G. Steels, as an Operational Creditor (OC), filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 23 Sept 2019
- **Citation:** TCN-2019-NCLT-01304
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/berry-auto-ancillaries-p-ltd-ib-722-nd-2019-c70c50c6

## Summary

### Background

R.G. Steels, as an Operational Creditor (OC), filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Berrys Auto Ancillaries Private Limited, the Corporate Debtor (CD), for allegedly unpaid amounts. The OC claimed a total debt of Rs. 15,16,753/- along with interest. The CD disputed the liability, citing a pre-existing dispute over rates charged by the OC.

## Facts

R.G. Steels, claiming to be an Operational Creditor (OC), filed a petition under Section 9 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Berrys Auto Ancillaries Private Limited (CD). The CD was incorporated on 10.9.1975, with a nominal capital of Rs. 2,20,00,000/- and a paid-up capital of Rs. 2,18,51,000/-. The OC claimed a total debt of Rs. 15,16,753/- based on two unpaid invoices: Invoice No. 385 dated 21.2.2017 for Rs. 5,01,131/- and Invoice No. 389 dated 24.2.2017 for Rs. 10,15,622/-, along with interest at 18% per annum. The OC had raised 30 invoices, but only two remained unpaid. A demand notice was issued by the OC to the CD on 8.9.2018, which was served, and the CD replied on 20.9.2018, disputing the liability. The

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## Issues and analysis

### Issue 1: Whether a sole proprietary concern is entitled to …

**Ratio:** Section 3(23) of the IBC, 2016 defines a 'person' who can initiate CIRP. While it

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**Reasoning:** The Tribunal considered the definition of 'person' under Section 3(23) of the IBC, 2016.

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**Interpretation:** The interpretation of 'person' under Section 3(23) of the IBC, 2016, is crucial

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**Application:** The Tribunal applied this interpretation to the fact that R.G. Steels was a

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## Parties

- **Judges:** Sh.R. Varad…; Sh. K. K. Kumar…
- **Appellants:** R.G. St…
- **Respondents:** Berrys Auto…; Berrys Auto…

## Timeline

- **1975-09-10 — Incorporation of…**: Berrys Auto Ancillaries…
- **2017-02-21 — Invoice…**: Invoice No. 385 dated…

## 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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