# In the matter of Durable Facade Services Private Limited Company Petition no. (IB)-902(ND)-2019

> NCLT judgment dated 2019-07-19. Citation: TCN-2019-NCLT-02408. Lakshmi Float Glass Limited, the applicant, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 19 Jul 2019
- **Citation:** TCN-2019-NCLT-02408
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/durable-facade-services-private-limited-company-petition-no-ib-902nd-2019-c4b21dd7

## Summary

### Background

Lakshmi Float Glass Limited, the applicant, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Durable Façade Services Private Limited, the respondent. The applicant claimed to be an operational creditor, supplying glass to the respondent. The respondent allegedly defaulted on payments for the supplied goods. The applicant asserted that the corporate debtor acknowledged its liability through emails and issued a cheque that was later returned due to insufficient funds. Despite reminders, the respondent failed to make the due payment, leading to the issuance of a demand notice under Section 8 of the Code.

## Facts

Lakshmi Float Glass Limited (applicant) is an operational creditor engaged in the business of supplying glass. Durable Façade Services Private Limited (respondent) is the corporate debtor. The applicant supplied glass to the respondent's workshop in Jaipur, evidenced by invoices dated 18.08.2015 and 22.08.2015, totaling Rs. 4,62,683/-. The respondent failed to supply C-Forms against these invoices and is liable to pay tax. The respondent acknowledged its liability through emails dated 18.04.2017 and issued a cheque dated 06.10.2018 for Rs. 4,62,683/-, which was returned unpaid due to 'Fund Insufficient'. A demand notice under Section 8 of the Code was issued on 01.12.2018. The total amount claimed to be in default is Rs. 8,08,169/-, including principal, tax liability,

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## Issues and analysis

### Issue 1: Whether the applicant, Lakshmi Float Glass Limited, qualifies as an 'Operational Creditor' under …

**Ratio:** The definition of 'Operational Creditor' under Section 5(20) of the Insolvency and

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**Reasoning:** The court reasoned that the applicant supplied goods (glass) to the respondent and its

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**Interpretation:** The term 'Operational Creditor' is interpreted broadly to include suppliers of

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**Application:** Lakshmi Float Glass Limited, as a supplier of glass to Durable Façade Services

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## Parties

- **Judges:** R. VARADH…; DeepaKr…
- **Appellants:** Lakshmi Float…
- **Respondents:** Durable Façade…

## Timeline

- **2015-08-18 — Invoice…**: Invoice no. 500206…
- **2015-08-22 — Invoice…**: Invoice no. 500209…

## 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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