# In the matter of HVR Projects Private Limited C.P. (IB) No. 1681-KB-2018

> NCLT judgment dated 2019-10-30. Citation: TCN-2019-NCLT-00778. This case involves an application filed by Parag Sales Corporation, an operational creditor,…

- **Court:** NCLT
- **Order date:** 30 Oct 2019
- **Citation:** TCN-2019-NCLT-00778
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hvr-projects-private-limited-cp-ib-no-1681-kb-2018-0f0d8d11

## Summary

### Background

This case involves an application filed by Parag Sales Corporation, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against HVR Projects Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted in paying an outstanding operational debt of Rs. 7,84,260/- along with interest at 24% per annum. The operational creditor issued a demand notice under Section 8(1) of the Code, but the corporate debtor failed to make the payment.

## Facts

Parag Sales Corporation, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against HVR Projects Private Limited, the corporate debtor. The operational creditor is a dealer/trader/manufacturer of industrial paints and chemicals. The corporate debtor placed purchase orders for purchasing these items. The operational creditor sold the goods as per the purchase orders, but the corporate debtor failed to pay Rs. 7,84,260/-. Despite repeated requests and a demand notice dated 09.06.2018 under Section 8 of the Code, the corporate debtor did not pay the outstanding amount. The operational creditor submitted various documents, including tax invoices, purchase

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

**Ratio:** Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016 states that the Adjudicating

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**Reasoning:** The court was satisfied that the operational creditor had met the requirements under the

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**Interpretation:** Section 9 of the IBC provides the procedure for an operational creditor to

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**Application:** The court applied Section 9(5)(i) to the facts of the case, noting that the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Parag Sales…
- **Respondents:** HVR Projects…; HVR Projects Pvt.…

## Timeline

- **2018-06-09 — Demand N…**: Operational Creditor issued demand notice to the Corporate Debtor under Section 8 of the…
- **2018-06-11 — Delivery of Demand…**: Demand notice was delivered…

## 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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