# In the matter of Jawaria Enterprises Private Limited C.P. No. 3346-IBC-MB-2019

> NCLT judgment dated 2021-11-30. Citation: TCN-2021-NCLT-00332. Anish Trading and Mercantile Private Limited, the Operational Creditor, filed a Company…

- **Court:** NCLT
- **Order date:** 30 Nov 2021
- **Citation:** TCN-2021-NCLT-00332
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jawaria-enterprises-private-limited-cp-no-3346-ibc-mb-2019-6e4b74a9

## Summary

### Background

Anish Trading and Mercantile Private Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Jawaria Enterprises Private Limited, the Corporate Debtor, alleging default in payment for materials supplied. The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to the outstanding debt.

## Facts

Anish Trading and Mercantile Private Limited (Operational Creditor) filed a petition against Jawaria Enterprises Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for default in payment. The Corporate Debtor allegedly failed to pay Rs. 17,47,300/- (principal) for materials supplied between 27.04.2019 and 20.08.2019, along with interest at 5.5% p.a. from 21.08.2019. The Operational Creditor issued a demand notice on 20.08.2019, which was hand-delivered to the Corporate Debtor, but no reply or dispute was raised. The Corporate Debtor had previously acknowledged the debt and requested time for payment. The Corporate Debtor did not appear before the NCLT Bench during the proceedings. The Operational Creditor provided evidence

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The Corporate Debtor failed to make payment of the outstanding amount despite repeated

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**Interpretation:** A 'default' under the IBC occurs when a debt has become due and payable but has

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**Application:** The Corporate Debtor's failure to pay the outstanding amount, despite admitting

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Anish Trading and…
- **Respondents:** Jawaria Enterprise…

## Timeline

- **2019-04-09 — Purchase Ord…**: Corporate Debtor placed Purchase…
- **2019-04-27 — Due Date…**: Due date for payment of the…

## 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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