# In the matter of Fortune Fasteners Pvt. Ltd. Company Petiiton No. IB-1292(ND)2018

> NCLT judgment dated 2019-04-24. Citation: TCN-2019-NCLT-03714. The application was filed by A.V. Wires Private Limited, the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 24 Apr 2019
- **Citation:** TCN-2019-NCLT-03714
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fortune-fasteners-pvt-ltd-company-petiiton-no-ib-1292nd2018-b547cd9b

## Summary

### Background

The application was filed by A.V. Wires Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Fortune Fasteners Private Limited, the Corporate Debtor. The application was based on an alleged default in payment of an operational debt. The Corporate Debtor was incorporated on 26.02.2010. The Operational Creditor performed job work and supplied goods to the Corporate Debtor between 03.03.2017 and 27.02.2018. Part payments were received during the period 03.03.2017 to 27.03.2018, with the last receipt of payment on 27.03.2018. A demand notice was issued on 09.08.2018 and received by the Corporate Debtor on 14.08.2018 and 26.08.2018. The Corporate Debtor

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## Facts

A.V. Wires Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Fortune Fasteners Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on a payment of Rs. 8,85,679/-. The default occurred on 07.09.2017. The Operational Creditor performed job work and supplied goods to the Corporate Debtor between 03.03.2017 and 27.02.2018. Part payments were received during the period 03.03.2017 to 27.03.2018. The last receipt of payment was on 27.03.2018. A demand notice was issued on 09.08.2018 and received by the Corporate Debtor on 14.08.2018 at the registered address in Delhi and on 26.08.2018 at

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating …

**Ratio:** Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016, specifies the conditions

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**Reasoning:** The Adjudicating Authority found that the application in Form 5 was complete, no payment

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**Interpretation:** Section 9(5)(i) outlines the mandatory conditions for admitting a CIRP

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**Application:** In this case, the Adjudicating Authority determined that all the conditions

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## Parties

- **Judges:** DEEPTI M…; Pradeep R.…
- **Appellants:** A.V. Wires Pvt.…
- **Respondents:** Fortune Fasteners…; Fortune Fasteners…

## Timeline

- **2010-02-26 — Incorporation of…**: Fortune Fasteners Private…
- **2017-03-03 — Start of Job Work and…**: Operational Creditor performed job work and…

## 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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