# In the matter of Friends Auto (India) Limited IB-621-ND-2018

> NCLT judgment dated 2019-08-06. Citation: TCN-2019-NCLT-02089. The case pertains to an application filed by Gandhar Oil Refinery India Ltd, the Operational…

- **Court:** NCLT
- **Order date:** 6 Aug 2019
- **Citation:** TCN-2019-NCLT-02089
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/friends-auto-india-limited-ib-621-nd-2018-ca28f700

## Summary

### Background

The case pertains to an application filed by Gandhar Oil Refinery India Ltd, the Operational Creditor, against Friends Auto (India) Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiation of the Corporate Insolvency Resolution Process (CIRP) due to non-payment of dues. The Operational Creditor claimed a principal sum of Rs. 35,05,959/- along with interest of Rs. 12,91,620/-, aggregating to Rs. 47,97,579/-. The application was based on purchase orders for goods supplied to the Corporate Debtor, with details of unpaid invoices provided. Despite repeated demands, payments were not made. The Corporate Debtor was exploring settlement, but it did not materialize. The Corporate Debtor also submitted post-dated cheques

…

## Facts

Gandhar Oil Refinery India Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Friends Auto (India) Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The claim was for unpaid dues amounting to Rs. 35,05,959/- as principal and Rs. 12,91,620/- as interest, totaling Rs. 47,97,579/-. The claim arose from the supply of goods based on purchase orders raised by the Corporate Debtor. The Operational Creditor provided details of unpaid invoices. Despite repeated demands, the Corporate Debtor failed to make payments. A demand notice was issued on February 20, 2018. The Corporate Debtor explored settlement but it did not materialize due to non-payment of interest.

…

## Issues and analysis

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

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

…

**Reasoning:** The court observed that the application was filed under Section 9 of the IBC, 2016. The

…

**Interpretation:** Section 9 of IBC allows an operational creditor to initiate CIRP if a default

…

**Application:** The court found that the Operational Creditor had fulfilled the requirements

…

## Parties

- **Judges:** R. VARADH…; K.K. V…
- **Appellants:** Gandhar Oil…
- **Respondents:** Friends Auto…

## Timeline

- **2018-02-20 — Demand Notice…**: The petitioner issued a demand…
- **2018-10-08 — Cheques Re…**: Cheques issued by the Corporate Debtor were…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/friends-auto-india-limited-ib-621-nd-2018-ca28f700