# In the matter of Gupta & Sons (Motors) Private Limited TP-MP 93 of 2019 in CP (IB) No. 650-9-NCLt-AHM-2019

> NCLT judgment dated 2020-12-21. Citation: TCN-2020-NCLT-00033. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Dec 2020
- **Citation:** TCN-2020-NCLT-00033
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gupta-sons-motors-private-limited-tp-mp-93-of-2019-in-cp-ib-no-650-9-nclt-ahm-20-57fc7fcb

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s. Decopride, a proprietor firm, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Gupta & Sons (Motors) Private Limited, the Corporate Debtor. The application was based on the Corporate Debtor's alleged default in paying an operational debt of Rs. 2,86,239/-. The Operational Creditor claimed to have provided labor services to the Corporate Debtor as per their requisition in 2018, raising an invoice for Rs. 2,39,239/-. Despite follow-ups, the Corporate Debtor allegedly failed to pay the amount. A demand notice was served on 30.07.2019 under Section 8 of the IBC.

## Facts

M/s. Decopride, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Gupta & Sons (Motors) Private Limited, the corporate debtor. The application was based on the corporate debtor's alleged default in paying an operational debt of Rs. 2,86,239/-. The operational creditor claimed to have provided labor services to the corporate debtor as per their requisition in 2018, raising an invoice for Rs. 2,39,239/-. Despite follow-ups, the corporate debtor allegedly failed to pay the amount. A demand notice was served on 30.07.2019 under Section 8 of the IBC. The corporate debtor, in its reply, admitted that the debt was outstanding in its books of

…

## Issues and analysis

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

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

…

**Reasoning:** The court observed that the Corporate Debtor admitted to the debt being outstanding in

…

**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

…

**Application:** The court applied the provisions of Section 9 to the facts of the case, noting

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Decop…
- **Respondents:** Gupta & Sons…; Gupta & Sons(Motor…
- **Advocates:** Mandeep Singh…; Nisarg…

## Timeline

- **2018-09-10 — Invoice…**: Operational Creditor provided services of labour to the Corporate Debtor and raised an…
- **2019-07-30 — Demand N…**: Operational Creditor served a demand notice on the Corporate Debtor under Section 8 of…

## 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)

---

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/gupta-sons-motors-private-limited-tp-mp-93-of-2019-in-cp-ib-no-650-9-nclt-ahm-20-57fc7fcb