# In the matter of Heatshrik Technologies Limited  (REPL Engineering Ltd.) C.P. No. 1351-I&B-2019

> NCLT judgment dated 2020-01-02. Citation: TCN-2020-NCLT-02567. The case pertains to a joint company petition filed by Thakorbhai Keshav Prajapati and others,…

- **Court:** NCLT
- **Order date:** 2 Jan 2020
- **Citation:** TCN-2020-NCLT-02567
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/heatshrik-technologies-limited-repl-engineering-ltd-cp-no-1351-ib-2019-59cf9f5e

## Summary

### Background

The case pertains to a joint company petition filed by Thakorbhai Keshav Prajapati and others, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against HeatShrink Technologies Limited. The petitioners allege that the Corporate Debtor defaulted on payments amounting to Rs. 24,39,130/- related to service benefits.

## Facts

Thakorbhai Keshav Prajapati and others (petitioners) filed a joint company petition to initiate Corporate Insolvency Resolution Process (CIRP) against HeatShrink Technologies Limited (Corporate Debtor). The petitioners claimed that the Corporate Debtor defaulted on payments amounting to Rs. 24,39,130/- related to service benefits, specifically leave encashment and gratuity. The petitioners served demand notices under Section 8 of the IBC, but received no reply. The Corporate Debtor acknowledged the debt in written submissions and requested time to pay due to financial difficulties. The Corporate Debtor sent letters to each petitioner acknowledging the debt and requesting more time to pay. The NCLT found that the Corporate Debtor admitted the liability and defaulted on

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## Issues and analysis

### Issue 1: Whether the petition filed by the Petitioners is in compliance with the provisions of Section 8 …

**Ratio:** Section 8 and 9 of the Insolvency and Bankruptcy Code (IBC) outline the procedure for

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**Reasoning:** The court was satisfied that the petition filed by the Petitioners was in compliance with

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**Interpretation:** Section 8 and 9 of the IBC are interpreted to ensure that operational creditors

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**Application:** The court applied the provisions of Section 8 and 9 to determine whether the

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** Thakorbhai Keshav…
- **Respondents:** HeatShrink…

## Timeline

- **2018-04-01 — Demand Notic…**: The petitioners individually sent demand notices under section 8 of the Code in Form 3,…
- **2017-12-21 — Corporate Debto…**: The Corporate Debtor sent replies to the petitioners acknowledging the debt and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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