# In the matter of Disha Interiors Private Limited CP-157-(IB)-CB-2018

> NCLT judgment dated 2018-05-30. Citation: TCN-2018-NCLT-01355. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 May 2018
- **Citation:** TCN-2018-NCLT-01355
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/disha-interiors-private-limited-cp-157-ib-cb-2018-a8bbcb36

## Summary

### Background

The case involves an application filed 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, by MMC Doortech Service Pvt Ltd (Operational Creditor) against Disha Interiors Pvt Ltd (Corporate Debtor). The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, declare a moratorium, and appoint an Interim Resolution Professional (IRP). The Operational Creditor claimed an outstanding debt of Rs.7,71,840/- as of 13.01.2017. The Corporate Debtor appeared and submitted that there were differences in accounts. The Adjudicating Authority appointed a Chartered Accountant (CA) to reconcile the accounts. The

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## Facts

MMC Doortech Service Pvt Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Disha Interiors Pvt Ltd (Corporate Debtor) for an outstanding debt of Rs.7,71,840/- as of 13.01.2017. The Corporate Debtor had placed purchase orders for the supply of Dorma Fittings from the Operational Creditor on various dates. The Operational Creditor raised invoices totaling 15 in number. The Corporate Debtor appeared and submitted that there were differences in accounts. The Adjudicating Authority appointed Mr. S. Mohan as Chartered Accountant (CA) to reconcile the accounts. The CA submitted a report stating the total principal amount payable by the Corporate Debtor is Rs.7,89,531/- excluding interest. The Corporate Debtor

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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 Adjudicating Authority considered the documents and submissions made by the

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

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**Application:** The Operational Creditor provided evidence of the outstanding debt, the demand

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** MMC DOORTECH…
- **Respondents:** Disha Interiors…; DISHA INTERIORS…
- **Advocates:** K.Gaurav…; Ralph V. M…

## Timeline

- **2017-01-13 — Outstandin…**: The Operational Creditor claims an…
- **2017-09-25 — Demand N…**: The Operational Creditor issued a Demand Notice…

## 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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