# In the matter of Dayal Commercial Co. Private Lmited CP (IB) No. 04-KB-2018

> NCLT judgment dated 2018-11-29. Citation: TCN-2018-NCLT-00259. The case involves a petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 by…

- **Court:** NCLT
- **Order date:** 29 Nov 2018
- **Citation:** TCN-2018-NCLT-00259
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dayal-commercial-co-private-lmited-cp-ib-no-04-kb-2018-d7ad9423

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 by Agarwal Alloys, an operational creditor, against Dayal Commercial Co. Private Ltd., the corporate debtor. The operational creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor due to an unpaid debt of Rs. 9,38,345, representing the price of goods sold and delivered.

## Facts

Agarwal Alloys, an operational creditor, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Dayal Commercial Co. Private Ltd., the corporate debtor, seeking to initiate CIRP. The operational creditor claimed that the corporate debtor owed Rs. 9,38,345 for goods sold and delivered between 01.04.2013 and 37.03.2015. A demand notice was sent on 15.11.2016, and another notice under Section 8 of the I&B Code was sent on 14.09.2017. The corporate debtor allegedly received these notices but did not reply or pay the amount. The operational creditor submitted a statement of account and a balance confirmation letter dated 22.08.2018. The corporate debtor contested the claim, arguing that the application was based on false claims, that

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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 of the Insolvency & Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court considered the evidence presented by the operational creditor, including the

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP

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

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## Parties

- **Judges:** Madan B.…
- **Appellants:** Agarwal A…
- **Respondents:** M/s.Dayal…

## Timeline

- **2013-04-01 — Period of Tra…**: During the period between 01.04.2013 and 37.03.2015, the Operational Creditor sold and…
- **2016-11-15 — Demand Noti…**: The Operational Creditor sent a demand notice to the Corporate Debtor calling upon them…

## 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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