# In the matter of Forever Precious Jewellery & Diamond Ltd. C.P. (IB) No. 207-9-NCLT-AHM-2017

> NCLT judgment dated 2018-02-13. Citation: TCN-2018-NCLT-01835. M/s. Ramesh T. Mehta (HUF), through its Karta Shri Ramesh T. Mehta, filed a petition under…

- **Court:** NCLT
- **Order date:** 13 Feb 2018
- **Citation:** TCN-2018-NCLT-01835
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/forever-precious-jewellery-diamond-ltd-cp-ib-no-207-9-nclt-ahm-2017-ca16d34e

## Summary

### Background

M/s. Ramesh T. Mehta (HUF), through its Karta Shri Ramesh T. Mehta, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Forever Precious Jewellery and Diamonds Limited, referred to as the 'Corporate Debtor'. The petitioner, an operational creditor, claimed that the corporate debtor defaulted in payment of operational debt.

## Facts

M/s. Ramesh T. Mehta (HUF), the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Forever Precious Jewellery and Diamonds Limited, the corporate debtor. The petitioner provided services for polishing and cutting rough diamonds to the respondent between the financial year 2012-2013. The total debt claimed by the petitioner was Rs. 9,35,071/-. The respondent acknowledged the amount, deducted tax, and issued TDS certificates. The petitioner issued a demand notice under Section 8 of the Code on 18.09.2017, calling upon the respondent to pay Rs. 9,35,071/- within 10 days. The demand notice was served on the respondent on 12.10.2017. The respondent failed to make payment or provide a reply. The petitioner claimed that

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor 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 considered the documents filed by the petitioner, including invoices, TDS

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**Interpretation:** The court interpreted Section 9 of the Code and Rule 6 of the Rules to mean

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**Application:** The court applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** BIKKI RAVEENDRA…; Manorama…
- **Appellants:** Ramesh T. Mehta…
- **Respondents:** Forever Precious…; Forever Precious…; +1 more

## Timeline

- **2012-10-04 — Invoice R…**: Invoice raised by the…
- **2012-10-16 — Invoice R…**: Invoice raised by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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