# In the matter of Customized Kitchen India Private Limited IB-1330-ND-2019

> NCLT judgment dated 2020-02-18. Citation: TCN-2020-NCLT-01905. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 18 Feb 2020
- **Citation:** TCN-2020-NCLT-01905
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/customized-kitchen-india-private-limited-ib-1330-nd-2019-5f6f5480

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Elan Professional Appliances Private Limited (Operational Creditor) against Customized Kitchen India Private Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed that the corporate debtor defaulted on payments for kitchen appliances sold in July 2018.

## Facts

Elan Professional Appliances Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Customized Kitchen India Private Limited (Corporate Debtor). The Operational Creditor sold kitchen appliances to the Corporate Debtor in July 2018 for a total amount of Rs. 12,78,783. The Corporate Debtor issued three cheques for the said amount, which were dishonored due to insufficient funds. A notice under Section 8 of the IBC, 2016 was sent to the Corporate Debtor on 18.04.2019, but it was not delivered due to an insufficient address. However, the notice was sent via email on 28.04.2019 to the email address available in the Company Master Data,

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** Section 9(5) of the IBC, 2016, provides for the admission of an application if the

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**Reasoning:** The court found that the Operational Creditor had demonstrated a default by the Corporate

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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 Section 9(5) of the IBC to the facts of the case, noting that

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## Parties

- **Judges:** Ch. Mohd Sharief…; SUMITAPURKA…
- **Appellants:** Elan Professional…
- **Respondents:** Customized…

## Timeline

- **2018-07-01 — Sale of Kitchen…**: Elan Professional Appliances Private Limited sold kitchen appliances to Customized…
- **2019-04-18 — Notice under Section 8…**: Notice under Section 8 of the IBC, 2016 was sent to the Corporate Debtor but not…

## 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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