# In the matter of Hollywood Opticians Private Limited CP (IB) No.1571-MB-C-IV-2019

> NCLT judgment dated 2020-04-28. Citation: TCN-2020-NCLT-01394. This case involves a petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 28 Apr 2020
- **Citation:** TCN-2020-NCLT-01394
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hollywood-opticians-private-limited-cp-ib-no1571-mb-c-iv-2019-adfcd5ec

## Summary

### Background

This case involves a petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Hoya Lens India Private Limited (Operational Creditor) against Hollywood Opticians Private Limited (Corporate Debtor) for failing to pay a debt of ₹50,35,714.00 towards principal and ₹10,18,182.00 towards interest as of 31.03.2018. The Operational Creditor had been supplying spectacle lenses to the Corporate Debtor based on several work orders. The Corporate Debtor claimed that the goods supplied were of substandard quality and raised disputes regarding the same. The Operational Creditor served a demand notice, but the Corporate Debtor did not reply.

## Facts

Hoya Lens India Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Hollywood Opticians Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on a payment of ₹50,35,714.00 towards principal and ₹10,18,182.00 towards interest as of 31.03.2018, totaling ₹60,53,896.00. The Operational Creditor supplied spectacle lenses to the Corporate Debtor based on several work orders, raising twenty-four invoices between 16.12.2017 and 31.03.2018. A demand notice was served on 09.02.2019. The Corporate Debtor argued that the goods supplied were of substandard quality, leading to customer complaints and refunds, and that they did not receive the demand notice.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a debt …

**Ratio:** Section 4(1) of the IBC stipulates a minimum default amount of one lakh rupees for

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**Reasoning:** The court found that the Corporate Debtor was in default of a debt exceeding one lakh

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**Interpretation:** The court interpreted Section 4(1) and Section 9 of the IBC to mean that if a

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**Application:** The court applied the ratio to the facts by noting that the debt exceeded one

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## Parties

- **Judges:** Rajasekha…; Ravikumar…; +1 more
- **Appellants:** Hoya Lens India…
- **Respondents:** Hollywood…
- **Advocates:** Roshni Tr…; Pankaj Ka…; +1 more

## Timeline

- **2016-01-01 — Business Rela…**: The Operational Creditor and Corporate Debtor shared a business relationship from 2016…
- **2017-12-16 — Invoice Perio…**: Start date of the period during which the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 2(20) — Application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-2)

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