# In the matter of Jay Formulations Ltd. C.P. No. (IB) 90-9-NCLT-AHM-2020

> NCLT judgment dated 2021-01-29. Citation: TCN-2021-NCLT-03194. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 29 Jan 2021
- **Citation:** TCN-2021-NCLT-03194
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jay-formulations-ltd-cp-no-ib-90-9-nclt-ahm-2020-10501784

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s. Enviro Fluid Consultants, an operational creditor, against Jay Formulations Ltd, the corporate debtor. Enviro Fluid Consultants claimed that Jay Formulations Ltd owed them Rs. 5,02,096/- for services related to the supply of an effluent treatment plant with piping and electrification. The corporate debtor had issued a purchase order dated 2018-10-10 for Rs. 8,21,280/-, with payment terms requiring full payment within 90 days of completion of work. The operational creditor raised bills, which were received and acknowledged by the corporate debtor. The corporate debtor made partial payments totaling Rs. 3,66,384/-, with the last payment received on 2019-01-11. The

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## Facts

M/s. Enviro Fluid Consultants, an operational creditor, filed a petition against Jay Formulations Ltd, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed that the corporate debtor owed Rs. 5,02,096/- for services related to the supply of an effluent treatment plant. A purchase order was issued on 2018-10-10 for Rs. 8,21,280/-, with payment due within 90 days of completion. The operational creditor raised bills, which were acknowledged by the corporate debtor. Partial payments of Rs. 3,66,384/- were made, with the last payment on 2019-01-11. A demand notice was issued on 2019-08-30 due to non-payment. The corporate debtor admitted to receiving reminders for payments but claimed they were withheld due to

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor is complete and meets the requirements of …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 requires the operational creditor

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**Reasoning:** The Adjudicating Authority found that the operational creditor had placed on record

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**Interpretation:** Section 9 outlines the process for an operational creditor to initiate the

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**Application:** The operational creditor provided copies of the purchase order, invoices,

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** M/s. Enviro Fluid…
- **Respondents:** Jay Formulations…

## Timeline

- **2018-10-10 — Purchase Orde…**: Jay Formulations Ltd issued a purchase order to Enviro Fluid Consultants for the supply…
- **2019-01-11 — Last Payment…**: Enviro Fluid Consultants received the last account payment from Jay Formulations Ltd,…

## 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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