# In the matter of Flower Dealcom Pvt. Ltd.  CP  (IB) No. 319-KB-2017

> NCLT judgment dated 2018-05-16. Citation: TCN-2018-NCLT-01400. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 16 May 2018
- **Citation:** TCN-2018-NCLT-01400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/flower-dealcom-pvt-ltd-cp-ib-no-319-kb-2017-32b9c5c9

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6(1) of the Insolvency and Bankruptcy (Application to Adjudicating Rules), 2016, for initiating the insolvency resolution process against Flower Dealcom Private Ltd, the Corporate Debtor. The operational creditor, Arun Kumar Jain, claimed that the corporate debtor defaulted in payment of professional service fees. The operational creditor had rendered professional services to the corporate debtor, which had an authorized share capital of Rs. 11,00,000/- and was incorporated on 19/04/2010.

## Facts

Arun Kumar Jain, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Flower Dealcom Private Limited, the corporate debtor. The corporate debtor allegedly defaulted in payment of professional service fees amounting to Rs. 4,60,000/-. The operational creditor issued a demand notice to the corporate debtor on April 20, 2017. The corporate debtor acknowledged the debt and requested additional time to settle the dues in a reply dated April 21, 2017. Despite this, the debt remained unpaid. The operational creditor filed an affidavit stating that the corporate debtor had not issued any notice regarding a dispute over the unpaid operational debt. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

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

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**Reasoning:** The court found that the operational creditor had issued a demand notice, which was

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP.

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**Application:** The court applied Section 9 to the facts of the case, noting that the

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Appellants:** Arun Kuma…
- **Respondents:** FLOWER DEALCOM…

## Timeline

- **2010-04-19 — Incorporation of…**: Flower Dealcom Private…
- **2017-04-20 — Demand Notice…**: The applicant raised Demand Notice (Form 3…

## 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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