# In the matter of DSK Motors Private Limited C.P. No. 512-I&BP-2019

> NCLT judgment dated 2019-04-09. Citation: TCN-2019-NCLT-04030. The case involves a Company Petition filed by Opulent Auto Care Private Limited (the…

- **Court:** NCLT
- **Order date:** 9 Apr 2019
- **Citation:** TCN-2019-NCLT-04030
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dsk-motors-private-limited-cp-no-512-ibp-2019-c0c3570c

## Summary

### Background

The case involves a Company Petition filed by Opulent Auto Care Private Limited (the Petitioner) against DSK Motors Private Limited (the Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Petitioner sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, alleging a default in payment of Rs. 2,05,03,870/-. The Petitioner claimed to have provided car care product services to the Corporate Debtor at seven locations based on an agreement dated 01.08.2016 and raised invoices accordingly. The demand notice sent by the Petitioner was returned with an endorsement 'door locked'.

## Facts

Opulent Auto Care Private Limited (Petitioner) filed a Company Petition against DSK Motors Private Limited (Corporate Debtor) under Section 9 of the IBC, 2016, seeking to initiate CIRP due to a default in payment of Rs. 2,05,03,870/-. The Petitioner and Corporate Debtor entered into an agreement on 01.08.2016, where the Petitioner agreed to render car care product services at seven locations. After providing services, the Petitioner raised invoices. The Petitioner sent a demand notice under Section 8 of the Code on 02.08.2018, which was returned with an endorsement 'door locked'. A copy of the petition was also sent to the Corporate Debtor and returned with the same endorsement. The Petitioner made publications in newspapers stating that the Petition would be taken up

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is in compliance with the provisions of …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The Bench was satisfied that the Application filed by the Operational Creditor is in

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**Interpretation:** The application must meet all requirements as per Section 8 and 9 of IBC to be

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**Application:** The court determined that the application was in compliance with Sections 8 and

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Opulent Auto Care…
- **Respondents:** DSK Motors…
- **Advocates:** Mohit K…; Manoj H.…

## Timeline

- **2016-08-01 — Agreement…**: The Petitioner and Corporate Debtor entered into an agreement wherein the Petitioner…
- **2018-08-02 — Demand Noti…**: The Petitioner sent a demand notice to the…

## 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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