# In the matter of Fans Asia Private Limited CP (IB) No. 671-9-HDB-2018

> NCLT judgment dated 2019-05-16. Citation: TCN-2019-NCLT-03285. The petition was filed by MM Aqua Technologies Limited, the Operational Creditor, against Fans…

- **Court:** NCLT
- **Order date:** 16 May 2019
- **Citation:** TCN-2019-NCLT-03285
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fans-asia-private-limited-cp-ib-no-671-9-hdb-2018-202247fb

## Summary

### Background

The petition was filed by MM Aqua Technologies Limited, the Operational Creditor, against Fans Asia Private Limited, the Corporate Debtor, for defaulting on a payment of Rs. 56,08,917. The Operational Creditor sought to initiate Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016.

## Facts

MM Aqua Technologies Limited (Operational Creditor) filed a petition against Fans Asia Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 56,08,917. The Operational Creditor stated that the Corporate Debtor failed to pay the agreed amounts for goods and services delivered as per a purchase order dated 03.07.2013. The total contract value was Rs. 1,38,37,720. The Operational Creditor delivered goods and services and raised invoices from 13.07.2015 to 17.10.2016. The Corporate Debtor failed to pay Rs. 13,03,128 against the 90% pro-rate amounts of supply due as on 16.11.2016, and Rs. 10,14,540 against the agreed 10% retention amount due as on 30.11.2017. The Corporate Debtor released Rs. 6,50,000 on

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in repaying the amount of Rs. 56,08,917 to the Operational …

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

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**Reasoning:** The court observed that the Operational Creditor presented evidence of unpaid invoices,

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**Interpretation:** The court interpreted Section 9 of the IBC to mean that if an operational

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**Application:** The court applied the ratio to the facts by noting that the Operational

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## Parties

- **Judges:** Ratakonda…; Ratakonda…
- **Respondents:** Fans Asia P…

## Timeline

- **2013-07-03 — Purchase Ord…**: Corporate Debtor issued a Purchase Order to the Operational Creditor with a total…
- **2015-07-13 — Invoice Perio…**: Operational Creditor started raising…

## 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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