# In the matter of Caara India Private Limited Company Petition No. IB-587-ND-2019

> NCLT judgment dated 2020-07-28. Citation: TCN-2020-NCLT-00949. Apavarga Trading Company, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 28 Jul 2020
- **Citation:** TCN-2020-NCLT-00949
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/caara-india-private-limited-company-petition-no-ib-587-nd-2019-11a3e44d

## Summary

### Background

Apavarga Trading Company, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Caara India Private Limited, the corporate debtor. The applicant claimed that the corporate debtor defaulted on payments for goods/groceries supplied since February 2016. The applicant issued a demand notice under Section 8 of the IBC, 2016, to which the corporate debtor replied, denying the full liability. The corporate debtor acknowledged a partial liability of Rs. 2,44,793/- and claimed to have already paid Rs. 3.93 lakhs against received goods and invoices. The applicant contended that the corporate debtor made payments in a running account manner without objecting

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## Facts

Apavarga Trading Company, a partnership firm, supplied goods/groceries to Caara India Private Limited, a private limited company, since February 2016. The applicant raised invoices totaling Rs 7,64,794.20/- between 15.02.2016 and 08.01.2017. The corporate debtor made some part payments. The applicant claims that an outstanding balance remains. The applicant issued a demand notice dated 11.09.2018 under Section 8 of the IBC, 2016. The corporate debtor denied the full liability, claiming to have paid Rs. 3.93 lakhs and disputing the remaining invoices. The corporate debtor acknowledged a liability of Rs. 2,44,793/- via email dated 16.12.2016. The applicant filed its bank statement showing that the claimed amount had not been received. The default occurred from 25.01.2017.

## Issues and analysis

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

**Ratio:** Section 9(5) of the IBC, 2016 states that the adjudicating authority must admit the

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**Reasoning:** The court found that the application was complete and that the applicant was entitled to

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**Interpretation:** Section 9 of the IBC outlines the procedure for initiating CIRP by an

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**Application:** The court applied Section 9(5) of the IBC to the facts of the case and

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## Parties

- **Judges:** DEEPTI M…; Sh. Hemant Kumar…
- **Appellants:** Apavarga Trading…
- **Respondents:** Caara India…

## Timeline

- **2016-02-01 — Business Deali…**: Business dealings between Apavarga Trading Company and Caara India Private Limited…
- **2016-02-15 — Invoice Perio…**: Start date of the period for which…

## 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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