# In the matter of Fernas Construction India Private Limited Company Petition No. IB-577-ND-2018

> NCLT judgment dated 2019-12-06. Citation: TCN-2019-NCLT-00297. Union Roadways Limited filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Dec 2019
- **Citation:** TCN-2019-NCLT-00297
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fernas-construction-india-private-limited-company-petition-no-ib-577-nd-2018-82888234

## Summary

### Background

Union Roadways Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Fernas Construction India Private Limited, the Corporate Debtor. The application was based on unpaid operational debt arising from the transportation of goods. Union Roadways claimed that Fernas Construction had hired their services for transporting goods from Delhi to various locations in India in 2011. Invoices raised for these services remained outstanding. Despite repeated requests, the outstanding amount was not paid. The Corporate Debtor acknowledged its liability of Rs 33,73,411/- in a letter dated 27.01.2015. However, after receiving Rs 15,81,363/-, a balance of Rs 17,92,048/-

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## Facts

Union Roadways Limited (Operational Creditor) provided transportation services to Fernas Construction India Private Limited (Corporate Debtor) in 2011. Invoices for these services remained unpaid. The Corporate Debtor acknowledged a liability of Rs 33,73,411/- in a letter dated 27.01.2015. Partial payments totaling Rs 15,81,363/- were made, with the last payment on 13.12.2015. An outstanding amount of Rs 17,92,048/- remained unpaid. A demand notice was issued on 27.05.2017, but the Corporate Debtor did not respond or make any payment. Union Roadways filed an application under Section 9 of the IBC on 18.03.2018. The Corporate Debtor did not appear or reply to the application. The registered office of the corporate debtor is situated in Delhi.

## Issues and analysis

### Issue 1: Whether the application filed by Union Roadways Limited under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency

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**Reasoning:** The court perused the documents on record and found that the application was complete.

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**Interpretation:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP

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**Application:** The court found that Union Roadways Limited had fulfilled all the requirements

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## Parties

- **Judges:** DEEPTI M…; Sh. Hemant Kumar…
- **Appellants:** Union Roadways…
- **Respondents:** Fernas Constructio…

## Timeline

- **2011-01-01 — Transportation Services…**: Union Roadways Limited provided transportation services to Fernas Construction India…
- **2015-01-27 — Acknowledgment…**: Fernas Construction India Private Limited acknowledged a liability of Rs 33,73,411/- to…

## 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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