# in the matter of JDS Apparels Pvt. Ltd. CP No.(IB) 49-(PB)-2017

> NCLT judgment dated 2017-05-18. Citation: TCN-2017-NCLT-00857. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 18 May 2017
- **Citation:** TCN-2017-NCLT-00857
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jds-apparels-pvt-ltd-cp-noib-49-pb-2017-5dfad323

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against the Corporate Debtor, JDS Apparels Private Limited, due to default in payment of operational debt. Pacific Maintenance Services Pvt. Ltd., the Operational Creditor, provides maintenance services for Pacific Mall and was appointed as a Mall Maintenance Agency. The Corporate Debtor occupied shops within the mall and agreed to pay maintenance charges. The Operational Creditor raised invoices for maintenance, but the Corporate Debtor failed to clear several invoices, leading to a total outstanding debt of Rs. 20,75,144/-.

## Facts

Pacific Maintenance Services Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against JDS Apparels Private Limited (Corporate Debtor) for defaulting on operational debt. The Corporate Debtor occupied shops in Pacific Mall, Sahibabad, Ghaziabad, with a total area of 60,563 square feet. The Operational Creditor, being the Mall Maintenance Agency, raised invoices for maintenance services as per the agreed terms. The Corporate Debtor failed to clear invoices amounting to Rs. 20,75,144/- between 01.05.2016 and 01.11.2016. The Operational Creditor served a legal notice dated 09.02.2017 under Section 8 of the Code, requesting payment within 10 days, but the Corporate Debtor neither paid nor replied. The

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of the operational debt to the Operational …

**Ratio:** The legal principle applied is that if a corporate debtor defaults in paying an

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**Reasoning:** The court reasoned that the Corporate Debtor occupied shops in Pacific Mall and agreed to

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**Interpretation:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational

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**Application:** In this case, the Operational Creditor, Pacific Maintenance Services Pvt. Ltd.,

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## Parties

- **Judges:** M. M. K…; R. VARADH…
- **Appellants:** Pacific Maintenanc…
- **Respondents:** JDS Apparels…

## Timeline

- **2016-05-01 — Default Com…**: Default in payment of invoices by the…
- **2016-05-01 — Invoice Perio…**: The period for which invoices are…

## 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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