# In the matter of Jan Aahar Pvt. Ltd (IB)-565(ND)-2017

> NCLT judgment dated 2018-03-22. Citation: TCN-2018-NCLT-01656. The petitioner, an Operational Creditor, sought initiation of Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 22 Mar 2018
- **Citation:** TCN-2018-NCLT-01656
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jan-aahar-pvt-ltd-ib-565nd-2017-08280e55

## Summary

### Background

The petitioner, an Operational Creditor, sought initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Operational Creditor claimed that the Corporate Debtor defaulted in remitting amounts under invoices, leading to an Operational Debt. The Corporate Debtor disputed the claim, alleging substandard quality of goods and raising objections regarding quality and quantity. The Adjudicating Authority noted that the Corporate Debtor had not raised these objections before and that the issuance of a cheque supported the Operational Creditor's claim.

## Facts

Mr. Naveen Chandok, the Operational Creditor, filed a petition against M/S Jan Aahar Pvt. Ltd, the Corporate Debtor, under Section 9 of the IBC, 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for the supply of pulses, with outstanding invoices totaling Rs. 73,80,675. The Corporate Debtor made a partial payment of Rs. 25,27,600, leaving a principal sum of Rs. 48,53,075 outstanding. A cheque for Rs. 20,23,032 issued by the Corporate Debtor was dishonored. The Operational Creditor issued a demand notice under Section 8 of the IBC on 30.10.2017, which the Corporate Debtor failed to comply with or dispute. The Corporate Debtor argued that the goods supplied were of substandard quality and that they had never admitted the claim. The

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## Issues and analysis

### Issue 1: Whether the Operational Creditor is entitled to initiate the Corporate Insolvency Resolution …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP if a debt is due and

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**Reasoning:** The court reasoned that the operational creditor had provided sufficient evidence of the

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if an operational debt exists

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Naveen Ch…
- **Respondents:** M/S Jan Aahar…

## Timeline

- **2017-05-01 — Default by Corporate…**: The Corporate Debtor defaulted in remitting amounts under some invoices, giving rise to…
- **2017-10-30 — Demand Notice…**: The applicant issued the demand notice u/s 8 of IBC against the corporate debtor calling…

## 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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