# In the matter of Digicontrols Northern Private Limited Company Petition No. (IB)-164-9-JPR-2019

> NCLT judgment dated 2019-10-11. Citation: TCN-2019-NCLT-01021. The case pertains to an application filed by M/s. Eltech Electro-Controls Pvt. Ltd.…

- **Court:** NCLT
- **Order date:** 11 Oct 2019
- **Citation:** TCN-2019-NCLT-01021
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/digicontrols-northern-private-limited-company-petition-no-ib-164-9-jpr-2019-30361ce2

## Summary

### Background

The case pertains to an application filed by M/s. Eltech Electro-Controls Pvt. Ltd. (Operational Creditor/Applicant) under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against M/s. Digicontrols Northern Private Limited (Corporate Debtor/Respondent). The Operational Creditor claims that the Corporate Debtor failed to pay an amount of Rs. 1,87,095.50/- for the supply of electronic items.

## Facts

M/s. Eltech Electro-Controls Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Digicontrols Northern Private Limited (Corporate Debtor) for non-payment of Rs. 1,87,095.50/-. The Operational Creditor supplied 35 cheque collection boxes and 22 price computation machines to the Corporate Debtor. The Corporate Debtor made partial payments totaling Rs. 49,266.50/-, leaving a balance of Rs. 1,87,095.50/- outstanding. The Operational Creditor issued a demand notice under Section 8 of the IBC, 2016, which was duly received by the Corporate Debtor. The Corporate Debtor acknowledged the debt in its reply but cited financial difficulties. The

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## Issues and analysis

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

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

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**Reasoning:** The court examined the application and found that it met the requirements of Section 9 of

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The Operational Creditor had submitted the necessary documents, including

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## Parties

- **Judges:** Ina Mal…; RAGHU N…; +1 more
- **Appellants:** M/s. Eltech…
- **Respondents:** M/s. Digicontrols…

## Timeline

- **1987-09-29 — Incorporation of…**: M/s. Digicontrols Northern Private Limited was…
- **2008-05-01 — Supply of…**: The Operational Creditor supplied goods…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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