# In the matter of Jangipur Bitumen Pvt. Ltd. C.P. (IB) No. 910-KB-2018

> NCLT judgment dated 2020-02-04. Citation: TCN-2020-NCLT-02090. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Feb 2020
- **Citation:** TCN-2020-NCLT-02090
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jangipur-bitumen-pvt-ltd-cp-ib-no-910-kb-2018-aeb143d1

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Bitumen Corporation (India) Pvt. Ltd. (Operational Creditor) against Jangipur Bitumen Pvt. Ltd. (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for the supply of bitumen. The Corporate Debtor contested the service of notice under Section 8 of the IBC, alleging that the notice was sent to an email address not regularly accessed by them.

## Facts

Bitumen Corporation (India) Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Jangipur Bitumen Pvt. Ltd. (Corporate Debtor) for initiating CIRP due to unpaid dues for the supply of bitumen. The Corporate Debtor had placed an order for 100 MT of bitumen with a payment term of 15 days, with interest payable at 24% for 16-30 days and 36% thereafter. The total supplies amounted to Rs. 30,43,345, out of which Rs. 19,43,345 remained unpaid. The last payment was made on 16.04.2016. The outstanding debt, including interest, as of the filing date, was Rs. 36,05,314. A notice under Section 8 of the IBC was issued via registered post, which was returned with the comment 'refused.' The notice was also sent

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## Issues and analysis

### Issue 1: Whether the notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 was properly served …

**Ratio:** As per Section 8(1) of the IBC, a demand notice of the operational creditor with a copy

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**Reasoning:** The court noted that the notice was sent by registered post, which was refused by the

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**Interpretation:** The court interpreted Rule 5 of the IBBI (Application to Adjudicating

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**Application:** The court applied the ratio to the facts by finding that the notice was served

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Bitumen Corporatio…
- **Respondents:** Jangipur Bitumen…

## Timeline

- **2020-01-27 — Date of H…**: Hearing held on January…
- **2020-02-04 — Order Del…**: Order delivered on…

## 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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