# In the matter of Ciemme Jewels Limited C.P. No. 297-I&BP-2018

> NCLT judgment dated 2018-04-18. Citation: TCN-2018-NCLT-01534. Vijisan Exports Pvt. Ltd. filed a Company Petition under Section 9 of the IBC, 2016, seeking to…

- **Court:** NCLT
- **Order date:** 18 Apr 2018
- **Citation:** TCN-2018-NCLT-01534
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ciemme-jewels-limited-cp-no-297-ibp-2018-6d8fbee5

## Summary

### Background

Vijisan Exports Pvt. Ltd. filed a Company Petition under Section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Ciemme Jewels Limited, alleging default in payment. The Corporate Debtor allegedly committed default on 28.04.2015 by not making payment of Rs. 1,89,76,252/-. The Petitioner, Vijisan Exports, supplied cut & polished diamonds to the Corporate Debtor as per their instructions. An invoice was raised for Rs. 2,03,01,252/-, payable in 30 days. The Corporate Debtor paid only Rs. 13,25,000/-, leaving a balance of Rs. 1,89,76,252/-. A demand notice was sent on 05.01.2018, to which the Corporate Debtor replied on 11.01.2018, citing financial difficulties and promising payment upon revival.

## Facts

Vijisan Exports Pvt. Ltd. (the Petitioner) is in the business of importing, exporting, and trading cut and polished diamonds. Ciemme Jewels Limited (the Corporate Debtor) allegedly defaulted on a payment of Rs. 1,89,76,252/-. The Petitioner supplied cut and polished diamonds to the Corporate Debtor on 28.03.2015, raising an invoice for Rs. 2,03,01,252/-, payable within 30 days. The Corporate Debtor paid only Rs. 13,25,000/- towards the invoice. The Petitioner sent a demand notice on 05.01.2018, to which the Corporate Debtor responded on 11.01.2018, citing financial difficulties and promising payment upon a revival plan. The Petitioner filed a certificate from IDBI Bank and an affidavit stating that no dispute had been raised by the Corporate Debtor. The Corporate

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is in compliance with the provisions of …

**Ratio:** The legal principle is that an application under Section 9 of the IBC can be admitted if

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**Reasoning:** The Bench was satisfied that the application filed by the Operational Creditor met the

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

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**Application:** The court applied this principle by reviewing the application, the demand

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Vijisan Exports…
- **Respondents:** Ciemme Jewels…

## Timeline

- **2015-03-28 — Supply of D…**: Vijisan Exports supplied cut & polished…
- **2015-04-28 — Default…**: Ciemme Jewels Limited allegedly…

## 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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