# In the matter of Bhavaytech Infra Project Pvt. Ltd. IA-3840-2021 in (IB) 618 (ND)-2020

> NCLT judgment dated 2021-10-08. Citation: TCN-2021-NCLT-00781. The case involves an application filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Oct 2021
- **Citation:** TCN-2021-NCLT-00781
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhavaytech-infra-project-pvt-ltd-ia-3840-2021-in-ib-618-nd-2020-70e61faa

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Bhavaytech Infra Project Pvt. Ltd. by Vikas Shuttering Store Pvt. Ltd., the operational creditor. The operational creditor claimed that the corporate debtor failed to liquidate its operational debt.

## Facts

Vikas Shuttering Store Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Bhavaytech Infra Project Pvt. Ltd. (Corporate Debtor) for failing to pay an operational debt. The Operational Creditor is in the business of supplying scaffolding/shuttering materials on a rental basis. The Corporate Debtor approached the Operational Creditor for the supply of these materials at various sites. The Operational Creditor agreed to supply the materials at agreed rates, with payment due within 15 days of invoice presentation. From 2014 to 2019, the Operational Creditor raised invoices, but the Corporate Debtor failed to honor its full financial obligation despite making some payments. As of the application, Rs.

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of an operational debt exceeding the …

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

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**Reasoning:** The court observed that the applicant had succeeded in establishing that there is an

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**Interpretation:** The existence of an operational debt is determined by the provision of goods or

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**Application:** The Operational Creditor provided evidence of unpaid invoices and outstanding

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Vikas Shuttering…
- **Respondents:** Bhavaytech Infra…

## Timeline

- **2019-11-18 — Demand Noti…**: Operational Creditor sent a demand notice under Section 8 of the Code to the Corporate…
- **2019-11-20 — Demand Notice…**: The demand notice was…

## 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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