# In the matter of Dunlop Auto Tyres Private Limited CP (IB) No.154-Chd-HP-2019

> NCLT judgment dated 2019-10-29. Citation: TCN-2019-NCLT-00792. Melrose Creations Private Limited, the operational creditor, filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 29 Oct 2019
- **Citation:** TCN-2019-NCLT-00792
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dunlop-auto-tyres-private-limited-cp-ib-no154-chd-hp-2019-393457a1

## Summary

### Background

Melrose Creations Private Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Dunlop Auto Tyres Private Limited, the corporate debtor, for non-payment of operational debt. The operational creditor provided consultancy services to the corporate debtor for restarting their cycle tyres manufacturing process. A work order was issued on 2018-07-10, and the project was completed on 2018-11-15. Despite several communications, the corporate debtor failed to make the payment of ₹2,62,575/-. A demand notice was issued on 2019-03-08, but the corporate debtor neither complied with the notice nor made any outstanding payment.

## Facts

Melrose Creations Private Limited (Operational Creditor) provided consultancy services to Dunlop Auto Tyres Private Limited (Corporate Debtor) to restart cycle tyre manufacturing. A work order was issued on 2018-07-10, requiring completion within 3 months. The project was completed on 2018-11-15, with a fee of ₹2,62,575/- due within 30 days. An invoice was raised on the same date. The last payment date was 2018-12-15. Despite communications, no payment was made. A demand notice was issued on 2019-03-08 for ₹2,60,356/- (including ₹10,356/- interest), requiring repayment within 10 days. The Corporate Debtor did not deny liability but requested more time via a letter dated 2019-01-15. The Operational Creditor proposed Mr. Tuhin Kumar Chatterjee as the Interim Resolution

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## Issues and analysis

### Issue 1: Whether the demand notice in Form No.3 …

**Ratio:** A demand notice is considered properly served if it is sent to the registered address of

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**Reasoning:** The demand notice dated 2019-03-08 was sent to the address as per the master data at Page

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**Interpretation:** The registered address is the official address for communication, and sending a

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**Application:** The demand notice was sent to the registered address of Dunlop Auto Tyres

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Melrose Creations…
- **Respondents:** Dunlop Auto Tyres…
- **Advocates:** Ivan Singh…; Balwinder S…

## Timeline

- **2018-07-10 — Work Order…**: Work order issued to Melrose Creations…
- **2018-11-15 — Project Com…**: Consultancy project completed by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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