# In the matter of B.M. Advertising Private Limited C.P. (IB) No. 223-KB-2018

> NCLT judgment dated 2019-10-16. Citation: TCN-2019-NCLT-00955. The case involves an application filed by Rammaica India Limited, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 16 Oct 2019
- **Citation:** TCN-2019-NCLT-00955
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bm-advertising-private-limited-cp-ib-no-223-kb-2018-e785767d

## Summary

### Background

The case involves an application filed by Rammaica India Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against B.M. Advertising Private Limited, the Corporate Debtor, due to unpaid operational debt. The Operational Creditor claimed that they supplied goods to the Corporate Debtor, raised invoices, and despite some payments, a significant amount remained due. The Corporate Debtor contested the application, claiming that there was no amount due and payable and that payments were made to Maxflex and Imaging Systems Limited, a sister concern of the Operational Creditor, as per their instructions.

## Facts

Rammaica India Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against B.M. Advertising Private Limited (Corporate Debtor) for unpaid operational debt. The Operational Creditor claimed that they supplied goods to the Corporate Debtor, raised invoices, and a sum of Rs. 11,62,965/- fell due, which with interest amounted to Rs. 14,82,552/- as of June 30, 2016. A demand notice was served on the Corporate Debtor on March 31, 2016, but no reply was received. The Operational Creditor also submitted that Form-3 notice under Section 8 of the IBC was duly served. The Corporate Debtor argued that the application was not maintainable, claiming that payments were made to M/s. Maxflex and Imaging Systems Limited, a

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court reasoned that the Operational Creditor had provided sufficient evidence to

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**Interpretation:** Section 9 is interpreted to mean that if the operational creditor demonstrates

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**Application:** In this case, the Operational Creditor provided invoices and a demand notice,

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Rammaica In…
- **Respondents:** B.M. Advertising…; B.M Advertising…

## Timeline

- **2016-03-31 — Demand Notice…**: Operational Creditor served a demand notice on the Corporate Debtor for the unpaid…
- **2016-06-30 — Debt Calcu…**: The total outstanding debt, including interest, amounted to Rs. 14,82,552/- as of this…

## 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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