# In the matter of City Bzr Fashions & Retail Private Limited C.P. (IB) No. 509-KB-2018

> NCLT judgment dated 2018-09-14. Citation: TCN-2018-NCLT-00756. J.D. (India) Corporation, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 14 Sept 2018
- **Citation:** TCN-2018-NCLT-00756
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/city-bzr-fashions-retail-private-limited-cp-ib-no-509-kb-2018-4c9dadce

## Summary

### Background

J.D. (India) Corporation, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against City Bzr Fashions & Retail Private Limited, the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed an outstanding operational debt of Rs. 2,02,992/-. Despite a demand notice, the corporate debtor failed to pay the amount, leading to the application.

## Facts

J.D. (India) Corporation, the operational creditor, supplied ready-made garments to City Bzr Fashions & Retail Private Limited, the corporate debtor, on various dates. Invoices were issued and received by the corporate debtor, who made partial payments over time. An amount of Rs. 2,02,292/- remained due and payable as of 22/03/2016, aggregating to Rs. 2,63,267/- with interest at 18% until 20/11/2017. The corporate debtor issued two account payee cheques, one for Rs. 50,000/- dated 29/08/2017 and another for Rs. 52,922/- dated 15/09/2017, but both were dishonored due to insufficient funds. The operational creditor issued a demand notice on 06/12/2017, which was delivered on 14/12/2017. The corporate debtor did not respond to the notice or pay the outstanding amount.

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

**Ratio:** Section 9(5)(i) of the Insolvency & Bankruptcy Code, 2016, specifies the requirements

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**Reasoning:** The court observed that the operational creditor had provided evidence of the operational

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

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**Application:** In this case, the operational creditor, J.D. (India) Corporation, provided

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## Parties

- **Judges:** Jinan…
- **Appellants:** J.D. (INDIA)…
- **Respondents:** City Bzr Fashions…
- **Advocates:** Awadhesh Ku…; Pooja…

## Timeline

- **2016-03-22 — Debt Pay…**: Amount of Rs.…
- **2017-08-29 — Cheque I…**: Corporate Debtor issued cheque…

## 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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