# In the matter of Deccan Brakes Private Limited CP (IB) No. 31-9-HDB-2019

> NCLT judgment dated 2019-09-11. Citation: TCN-2019-NCLT-01499. The case involves a petition filed by IVP Limited (Operational Creditor) against Deccan Brakes…

- **Court:** NCLT
- **Order date:** 11 Sept 2019
- **Citation:** TCN-2019-NCLT-01499
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deccan-brakes-private-limited-cp-ib-no-31-9-hdb-2019-0a505bd0

## Summary

### Background

The case involves a petition filed by IVP Limited (Operational Creditor) against Deccan Brakes Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claims that the Corporate Debtor defaulted in paying an amount of Rs. 11,78,946/- for the supply of IVAREZ 33 Resin between April 2018 and September 2018. The Corporate Debtor allegedly failed to pay the invoices within the stipulated 45 days, leading to the operational debt. The Operational Creditor issued a demand notice on 12.12.2018, which the Corporate Debtor replied to on 31.12.2018, raising disputes regarding the claims.

## Facts

IVP Limited (Operational Creditor) filed a petition against Deccan Brakes Private Limited (Corporate Debtor) under Section 9 of the IBC, 2016, claiming a default of Rs. 11,78,946/-. Between April and September 2018, the Corporate Debtor placed orders for IVAREZ 33 Resin, which the Operational Creditor supplied. The invoices were due within 45 days, but the Corporate Debtor failed to pay. The Operational Creditor issued a demand notice on 12.12.2018. The Corporate Debtor replied on 31.12.2018, disputing the claims and raising debit notes. The Corporate Debtor claimed the material supplied was defective and raised debit notes against earlier invoices (dated 2016 and 2017). The Operational Creditor argued that these debit notes were bogus and raised for the first time

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established an undisputed operational debt against the …

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

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**Reasoning:** The court examined the invoices, demand notice, and the Corporate Debtor's reply. It

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**Interpretation:** The court interpreted Section 9 of the IBC to mean that a dispute must be

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**Application:** The court applied the ratio to the facts and found that the Operational

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…
- **Appellants:** IVP Lim…
- **Respondents:** Deccan Brakes…

## Timeline

- **2018-04-01 — Supply of M…**: Between April 2018 and September 2018, the Corporate Debtor placed orders on the…
- **2018-12-12 — Demand Notice…**: The Operational Creditor issued a Demand Notice to the Corporate Debtor under Section 8…

## 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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