# In the matter of Choudhery Cheese Bazar Pvt. Ltd. (IB)-202(ND)-2019

> NCLT judgment dated 2019-04-23. Citation: TCN-2019-NCLT-03758. Unipik Automation Solutions, an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 23 Apr 2019
- **Citation:** TCN-2019-NCLT-03758
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/choudhery-cheese-bazar-pvt-ltd-ib-202nd-2019-a9f3daae

## Summary

### Background

Unipik Automation Solutions, an operational creditor, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Choudhery Cheese Bazar Pvt. Ltd., the corporate debtor, for its inability to liquidate outstanding debt. The operational creditor was engaged to supply and install an indexing conveyor belt at the corporate debtor's factory. A purchase order was placed on 03.12.2014, and an advance of Rs. 34,000/- was paid. After installation, the 'C' form was not submitted, and the corporate debtor found the motor underpowered, leading to an upgrade at their request.

## Facts

Unipik Automation Solutions, a registered partnership firm, is in the business of manufacturing Industrial Automation Equipment. Choudhery Cheese Bazar Pvt. Ltd. requested Unipik to supply and install an indexing conveyor belt at their factory in Noida, Uttar Pradesh. A purchase order was placed on 03.12.2014 after a price quotation was accepted, and an advance of Rs. 34,000/- was paid. After installation, the 'C' form was not submitted, and the corporate debtor found the motor underpowered, leading to an upgrade. An invoice dated 25.01.2016 for Rs. 1,32,600/- was raised for the new motor, and Rs. 3000/- was requested for transportation charges. Despite acknowledging the upgraded parts, the corporate debtor failed to liquidate the amount. A legal notice was sent, but

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor, Unipik Automation Solutions, under Section …

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

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**Reasoning:** The court reasoned that the corporate debtor failed to appear and resist the petition,

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

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**Application:** The court applied Section 9 to the facts of the case, noting that Unipik

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## Parties

- **Judges:** MALHO…; V.K. SUB…
- **Appellants:** Unipik Automation…
- **Respondents:** Choudhery Cheese…

## Timeline

- **2014-12-03 — Purchase…**: Purchase order placed by Choudhery Cheese Bazar Pvt. Ltd. for an indexing conveyor belt,…
- **2016-01-25 — Invoice R…**: Invoice raised for Rs. 1,32,600/- for the new motor and Rs. 3000/- for transportation…

## 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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