# In the matter of Kiran Udyog Private Limited IB-813-(ND)-2020

> NCLT judgment dated 2021-12-14. Citation: TCN-2021-NCLT-00179. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 14 Dec 2021
- **Citation:** TCN-2021-NCLT-00179
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kiran-udyog-private-limited-ib-813-nd-2020-b668d71b

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s Jaycee Castalloys Private Limited (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against Kiran Udyog Private Limited (Corporate Debtor) for an alleged default of Rs. 3,51,99,422/-. The Operational Creditor claims to have supplied auto parts to the Corporate Debtor based on purchase orders, with a credit period of 60 days. The Corporate Debtor allegedly defaulted on payments, leading to the application.

## Facts

M/s Jaycee Castalloys Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kiran Udyog Private Limited (Corporate Debtor). The Operational Creditor claimed a default of Rs. 3,51,99,422/- for auto parts supplied to the Corporate Debtor. The Corporate Debtor issued purchase orders with a 60-day credit period. The Operational Creditor maintained a running account. A statutory demand notice dated 2020-03-20 was sent to the Corporate Debtor on 2020-03-24. The Corporate Debtor claimed that the demand notice was not received and that there was a pre-existing dispute. The Corporate Debtor also claimed that the application was premature due to

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of debt and default on the part of …

**Ratio:** The existence of debt and default is a prerequisite for admitting an application under

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**Reasoning:** The NCLT found that the Operational Creditor had provided sufficient evidence, including

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**Interpretation:** The court interpreted the evidence presented by the operational creditor as

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**Application:** The NCLT applied the ratio to the facts, noting that the invoices were duly

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI.BINOD K.…
- **Appellants:** M/s Jaycee…
- **Respondents:** Kiran Udyog…

## Timeline

- **2020-03-20 — Demand Noti…**: Statutory Demand notice dated 20.03.2020…
- **2020-03-24 — Demand Notice…**: Demand notice was delivered to…

## 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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