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

> NCLT judgment dated 2021-12-14. Citation: TCN-2021-NCLT-00184. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 14 Dec 2021
- **Citation:** TCN-2021-NCLT-00184
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kiran-udyog-private-limited-ib-813-nd-2020-d350fea1

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s Jaycee Castalloys Private Limited (Operational Creditor) seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Kiran Udyog Private Limited (Corporate Debtor) for alleged default in clearing a debt of Rs. 3,51,99,422. The Operational Creditor claimed 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. The Corporate Debtor contested the application, claiming that the demand notice was not received, the amount claimed was disputed, and the application was premature due to the extended limitation period

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## 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 that the Corporate Debtor defaulted on a debt of Rs. 3,51,99,422 for auto parts supplied. The Operational Creditor and Corporate Debtor had an agreement for the supply of auto parts, with payment terms of 60 days credit. The Corporate Debtor issued purchase orders, and the Operational Creditor supplied goods. The Corporate Debtor made some part payments. The Operational Creditor sent a demand notice dated 20.03.2020, which was allegedly delivered on 24.03.2020. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the Operational Creditor followed the correct procedure for initiating CIRP under Section 9 …

**Ratio:** The procedure under Section 9 of the IBC requires the Operational Creditor to serve a

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**Reasoning:** The court considered the submissions of both parties regarding the service of the demand

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**Interpretation:** Section 9 of the IBC outlines the steps for initiating CIRP by an Operational

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**Application:** The court found that the Operational Creditor had served the demand notice via

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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…**: Operational Creditor issued a statutory…
- **2020-03-24 — Demand Notice…**: The demand notice was allegedly…

## 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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