# In the matter of Globcon Commercial Services Private Limited CP No. 3927 (IB)-MB-C-II-2019

> NCLT judgment dated 2021-01-25. Citation: TCN-2021-NCLT-03237. The case involves an IB Petition filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Jan 2021
- **Citation:** TCN-2021-NCLT-03237
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/globcon-commercial-services-private-limited-cp-no-3927-ib-mb-c-ii-2019-9b64c043

## Summary

### Background

The case involves an IB Petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Hangji Global Limited (Operational Creditor) against Globcon Commercial Services Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor allegedly defaulted on a payment of USD 1,00,000/- as principal amount as on 27.08.2017, along with interest. The Operational Creditor provided advisory services to the Corporate Debtor based on an agreement dated 21.08.2017. The Corporate Debtor admitted to availing the services but cited financial stress as the reason for non-payment.

## Facts

Hangji Global Limited (Operational Creditor) filed an IB Petition against Globcon Commercial Services Private Limited (Corporate Debtor) under Section 9 of the IBC. The Corporate Debtor engaged the Operational Creditor for evaluation services of coal and iron ore mines. An agreement for Project Advisory Services was entered on 21.08.2017. The Operational Creditor raised an invoice dated 27.08.2017 for USD 1,00,000, with payment due within 60 days (i.e., by 23.10.2017). The Corporate Debtor failed to make the payment. The Operational Creditor sent various correspondences requesting payment. The Corporate Debtor admitted its debt liability and sought extensions of time. A demand notice was served on 17.06.2019. The Corporate Debtor admitted to availing the services but

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of the outstanding dues to the Operational …

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

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**Reasoning:** The Corporate Debtor admitted to availing the services of the Operational Creditor and

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**Interpretation:** The IBC defines 'default' as non-payment of debt when it has become due and

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**Application:** The Corporate Debtor's admission of debt and failure to pay the outstanding

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## Parties

- **Judges:** Harihar Prakash…; RavikumarDu…
- **Appellants:** Hangji Global…
- **Respondents:** Globcon Commercial…

## Timeline

- **1990-05-18 — Corporate Debtor…**: Globcon Commercial Services…
- **2017-08-21 — Agreement for Advisory…**: The Corporate Debtor entered into an agreement with the Operational Creditor for Project…

## 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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