# In the matter of Hotel East Palace Private Limited C.P. (IB) No. 115-KB-2019

> NCLT judgment dated 2019-08-07. Citation: TCN-2019-NCLT-02063. The case pertains to an application filed by Mr. Arup Kumar Gupta, an Operational Creditor,…

- **Court:** NCLT
- **Order date:** 7 Aug 2019
- **Citation:** TCN-2019-NCLT-02063
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hotel-east-palace-private-limited-cp-ib-no-115-kb-2019-24288733

## Summary

### Background

The case pertains to an application filed by Mr. Arup Kumar Gupta, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of corporate insolvency resolution process against M/S. HOTEL EAST PALACE PRIVATE LIMITED, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor had approached him to handle and settle litigation filed by Punjab National Bank regarding a business loan. The Operational Creditor sent an email on June 28, 2018, detailing their fee schedule, which the Corporate Debtor accepted through a letter dated July 11, 2018. The Operational Creditor engaged advocates, took steps, and raised a bill of Rs. 10,50,000/-. However, the Corporate Debtor failed to pay despite requests, leading to

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## Facts

Mr. Arup Kumar Gupta, an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/S. HOTEL EAST PALACE PRIVATE LIMITED, the Corporate Debtor. The Corporate Debtor had approached the Operational Creditor to handle and settle litigation with Punjab National Bank regarding a business loan. The Operational Creditor sent an email on June 28, 2018, detailing their fee schedule, which the Corporate Debtor accepted through a letter dated July 11, 2018. The Operational Creditor engaged advocates and raised a bill of Rs. 10,50,000/-, but the Corporate Debtor failed to pay. The Operational Creditor sent a demand notice dated December 22, 2018, which was received by the Corporate Debtor on December 26, 2018. The Corporate

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has successfully proven the existence of an operational debt owed …

**Ratio:** The burden of proof lies on the Operational Creditor to establish the existence of an

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**Reasoning:** The Tribunal found that the Operational Creditor failed to prove the schedule of payments

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**Interpretation:** The legal principle requires the Operational Creditor to provide clear and

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**Application:** In this case, the Operational Creditor's claim was weakened by the lack of a

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Arup Kr.…
- **Respondents:** Hotel East Palace…; Hotel East…

## Timeline

- **2018-06-28 — Operational Creditor…**: The Operational Creditor sent an email to the Corporate Debtor detailing the schedule of…
- **2018-07-11 — Corporate Debtor…**: The Corporate Debtor accepted the fee schedule of the Operational Creditor through a…

## 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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