# In the matter of Best Zone Builders and Developers Private Limited CP (IB) No. 199-Chd-Pb-2020

> NCLT judgment dated 2021-02-19. Citation: TCN-2021-NCLT-02991. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Adit…

- **Court:** NCLT
- **Order date:** 19 Feb 2021
- **Citation:** TCN-2021-NCLT-02991
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/best-zone-builders-and-developers-private-limited-cp-ib-no-199-chd-pb-2020-8f486fee

## Summary

### Background

The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Adit Goel, proprietor of Adit Collaboration, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Best Zone Builders & Developers Private Limited. The operational creditor claimed that the corporate debtor regularly purchased cement, bricks, and other building materials from them since 2018-19 based on verbal orders and invoices, with a 60-day credit period. The corporate debtor allegedly failed to make payments against the invoices, leading to the petition.

## Facts

Adit Goel, operating as Adit Collaboration, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Best Zone Builders & Developers Private Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). Adit Goel, the operational creditor, claimed that Best Zone Builders & Developers Private Limited, the corporate debtor, had been regularly purchasing building materials from them since 2018-19. These transactions were based on verbal orders, with invoices issued for the supplies. A credit period of 60 days was allegedly agreed upon. The corporate debtor failed to make payments against these invoices, leading to a total outstanding debt of ₹1,19,57,310/-, including ₹1,03,48,300/- as principal and ₹16,09,010/- as

…

## Issues and analysis

### Issue 1: Whether the demand notice in Forms 3/4 …

**Ratio:** The demand notice must be served to the registered address of the corporate debtor as per

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**Reasoning:** The court observed that the demand notice was sent to the registered address of the

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**Interpretation:** Proper service of demand notice is a prerequisite for initiating CIRP under

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**Application:** In this case, the demand notice was sent to the registered address of the

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## Parties

- **Judges:** Ajay Kumar…; RaghuNa…
- **Appellants:** Adit…
- **Respondents:** Best Zone…

## Timeline

- **2011-01-19 — Incorporation of…**: Best Zone Builders & Developers Private Limited was incorporated under the Companies Act,…
- **2020-06-20 — Demand N…**: A demand notice in Forms 3/4 was served…

## 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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