# In the matter of Frog Fone Pvt. Ltd. IB-1452-ND-2019

> NCLT judgment dated 2019-11-19. Citation: TCN-2019-NCLT-00547. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 19 Nov 2019
- **Citation:** TCN-2019-NCLT-00547
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/frog-fone-pvt-ltd-ib-1452-nd-2019-04efe333

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s. Frog Fone Pvt. Ltd. The Operational Creditor (OC), Mr. Sonu Kumar, claims an outstanding amount of Rs.7,00,300/- for material supplied to the Corporate Debtor (CD).

## Facts

Mr. Sonu Kumar, the Operational Creditor, filed an application under Section 9 of the IBC, 2016, against M/s. Frog Fone Pvt. Ltd., the Corporate Debtor, claiming an outstanding amount of Rs.7,00,300/- for materials supplied on July 7, 2018, based on a purchase order issued by the Corporate Debtor on June 29, 2018. The Operational Creditor also placed the invoice dated July 7, 2018, on record and had sent a notice under Section 8 of the IBC, 2016, to the Corporate Debtor. The Corporate Debtor defended by stating that the supplied goods were defective and that no opportunity was given to them for testing and verifying the material. The Corporate Debtor admitted that no debit note or written communication was sent to the Operational Creditor regarding the defective goods.

## Issues and analysis

### Issue 1: Whether the Operational Creditor's application under Section 9 of the IBC, 2016, should be admitted …

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

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**Reasoning:** The court reasoned that the Operational Creditor had complied with the provisions of

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**Interpretation:** Section 9 of the IBC is interpreted to mean that an application can be admitted

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**Application:** The court applied the ratio to the facts by noting that the Operational

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## Parties

- **Judges:** Ch. Mohd Sharief…; K.K. V…
- **Appellants:** Sonu K…
- **Respondents:** M/s. Frog Fone…
- **Advocates:** Anshuj Dh…; Shubhangda…

## Timeline

- **2018-06-29 — Purchase Orde…**: The Corporate Debtor issued a purchase order…
- **2018-07-07 — Material Su…**: The Operational Creditor supplied…

## 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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