# In the matter of Genius Exports Private Limited Company Petition No. (IB)-176(ND)-2020

> NCLT judgment dated 2021-07-01. Citation: TCN-2021-NCLT-01879. The case involves an application filed by Arun Kumar Singh, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 1 Jul 2021
- **Citation:** TCN-2021-NCLT-01879
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/genius-exports-private-limited-company-petition-no-ib-176nd-2020-a2714434

## Summary

### Background

The case involves an application filed by Arun Kumar Singh, an operational creditor, against Genius Exports Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiation of the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed that the corporate debtor defaulted in paying outstanding dues for services rendered as a statutory auditor. The corporate debtor contested the claim, arguing that the applicant did not complete the accounting for the financial year 2018-2019 and that payments were made by different companies. The Adjudicating Authority examined the application to determine if there was an operational debt exceeding Rs. 1 lakh, if documentary evidence showed the debt was due and

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## Facts

Arun Kumar Singh, the operational creditor and sole proprietor of A.K. Singh & Co., filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Genius Exports Private Limited, the corporate debtor. The operational creditor claimed to be owed Rs. 8,93,530/-, inclusive of interest, for services rendered as a statutory auditor from 30.08.2014 to 26.03.2019, with the principal amount of Rs. 5,59,250/- payable from 01.03.2018. A demand notice was sent on 27.07.2019. The corporate debtor contended that the claim did not fall within the ambit of operational debt, that payments were made by different companies, and that the applicant did not complete the accounting for the financial year 2018-2019. The operational creditor raised bills for

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## 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, read with the Supreme Court's

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**Reasoning:** The Adjudicating Authority reasoned that the application was complete in all respects,

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**Interpretation:** Section 9 mandates that the application must be complete and meet all the

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**Application:** In this case, the Adjudicating Authority applied the ratio by examining the

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## Parties

- **Judges:** P.S.N. P…; Narender Kumar…
- **Appellants:** Arun Kumar…
- **Respondents:** Genius Exports…
- **Advocates:** Ashish Ma…; Gitesh…; +1 more

## Timeline

- **2014-01-01 — Appointment as…**: The applicant was appointed as a statutory auditor of the Corporate Debtor in the year…
- **2014-08-30 — Service P…**: The applicant performed duties and raised…

## 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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