# In the matter of Deltronix India Limited (IB)-2963(ND)2019

> NCLT judgment dated 2021-02-03. Citation: TCN-2021-NCLT-03134. The case involves a petition filed by Mr. Tarun Khanna, an Operational Creditor, under Section…

- **Court:** NCLT
- **Order date:** 3 Feb 2021
- **Citation:** TCN-2021-NCLT-03134
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deltronix-india-limited-ib-2963nd2019-c5542628

## Summary

### Background

The case involves a petition filed by Mr. Tarun Khanna, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s. Deltronix India Limited, the Corporate Debtor. The Operational Creditor seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for unpaid legal service fees. The Corporate Debtor denies the debt, claiming payments were made and disputes exist.

## Facts

Mr. Tarun Khanna, an advocate, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, as an Operational Creditor against M/s. Deltronix India Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) for an outstanding debt of Rs. 11,17,000/- for legal services rendered. The Corporate Debtor denied the debt, claiming that payments were made and disputes existed. The Corporate Debtor issued several cheques to the Operational Creditor, two of which were dishonored with the remark 'Payment Stopped By Drawer.' The Operational Creditor issued a demand notice dated 24.09.2019 under Section 8 of the IBC, 2016. The Corporate Debtor claimed to have made payments to Smt. Aarushi Tiku for services related to Mr.

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has successfully established a default on the part of the …

**Ratio:** The ratio is based on the provisions of Section 9(5) of the IBC, which allows for the

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**Reasoning:** The court reasoned that the Corporate Debtor failed to provide a satisfactory explanation

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**Interpretation:** The interpretation involves understanding the requirements for admitting a

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**Application:** The court applied the ratio by examining the evidence presented by both

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## Parties

- **Judges:** Sh. Abni Ranjan…; SH. L. N.…
- **Appellants:** Tarun K…
- **Respondents:** M/s. Deltronix…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and Bankruptcy…
- **2017-12-07 — Invoice…**: Operational Creditor raised invoice No.…

## 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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