# In the matter of Brilliant IT Enabling Services Pvt. Ltd. IBA-1170-2019

> NCLT judgment dated 2021-03-04. Citation: TCN-2021-NCLT-02824. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Mar 2021
- **Citation:** TCN-2021-NCLT-02824
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/brilliant-it-enabling-services-pvt-ltd-iba-1170-2019-fb986149

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s. Sri Vengada Ramana Traders, an operational creditor, against M/s. Brilliant IT Enabling Services Pvt. Ltd., the corporate debtor, for unpaid dues related to interior work. The application was filed due to the corporate debtor's failure to pay Rs. 1,60,000/- based on an invoice dated 13.01.2017. A demand notice under Section 8 was issued on 13.05.2019.

## Facts

M/s. Sri Vengada Ramana Traders, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s. Brilliant IT Enabling Services Pvt. Ltd., a corporate debtor. The claim is for Rs. 1,60,000/- due to unpaid invoices for interior work. An invoice dated 13.01.2017 was issued. The corporate debtor made an advance payment of Rs. 15,000/- on 03.01.2017. A demand notice under Section 8 of IBC was issued on 13.05.2019. The corporate debtor admitted to the debt in a counter affidavit filed on 17.12.2020. The application was filed on 03.09.2019. The pecuniary jurisdiction of IBC was raised from Rupees One Lakh to Rupees One Crore by amendment dated 24.03.2020. The application was filed before the amendment.

## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is …

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

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**Reasoning:** The corporate debtor admitted to owing the debt of Rs. 1,60,000/- to the operational

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover unpaid

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**Application:** The corporate debtor's admission of the debt and the fulfillment of the

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** M/s. Sri Vengada…
- **Respondents:** M/s. Brilliant IT…

## Timeline

- **2017-01-03 — Advance P…**: Corporate Debtor paid…
- **2017-01-13 — Invoice…**: Invoice for Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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