# In the matter of Chandi Cranes Private Limited

> NCLT judgment dated 2022-05-27. Citation: TCN-2022-NCLT-04754. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s…

- **Court:** NCLT
- **Order date:** 27 May 2022
- **Citation:** TCN-2022-NCLT-04754
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chandi-cranes-private-limited-026be97a

## Summary

### Background

The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s Sanghi Movers Private Limited (Operational Creditor) to initiate Corporate Insolvency Resolution Process (CIRP) against Chand Cranes Private Limited (Corporate Debtor).

## Facts

M/s Sanghi Movers Private Limited, the Operational Creditor, approached Chand Cranes Private Limited, the Corporate Debtor, for the supply of cranes on a hire/rental basis.

A Purchase Agreement dated January 04, 2018, was executed between SML and CD for Rs.3,11,00,000/-+ GST as applicable.

Invoice nos. SML/MH/2017-18/004 and SML/MH/2017-18/005 dated 04th Jan. 2018 of amount Rs.3,66,98,000/- including GST had been raised.

The amount claimed to be in default is Rs. 3,66,980/- excluding 24% interest p.a. till date and the default occurred on 21.07.2018.

A demand notice in Form 3 dated 14.01.2019 was stated to be issued to the operational creditor by registered post.

The application was filed on 21.05.2019 vide Diary No. 2575.

…

## Issues and analysis

### Issue 1: Whether the demand notice in Form 3 …

**Ratio:** The service was not received and

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**Reasoning:** The Adjudicating Authority noted that the service was not received and publication has

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**Interpretation:** The requirement of service of demand

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**Application:** The Adjudicating Authority proceeded with the case despite the Corporate Debtor

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** M/s Sanghi Movers…
- **Respondents:** Chand Cranes…
- **Other parties:** Bhupinder…
- **Advocates:** Ajay Bha…

## Timeline

- **2018-01-04 — Purchase Ag…**: Purchase Agreement dated January 04,…
- **2018-01-04 — Invoice R…**: Invoice nos. SML/MH/2017-18/004 and SML/MH/2017-18/005 dated 04th Jan. 2018 of amount…

## 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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