# In the matter of Kredo Beauty Pvt. Ltd. (IB)-1164(ND)2019

> NCLT judgment dated 2020-01-16. Citation: TCN-2020-NCLT-02324. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Jan 2020
- **Citation:** TCN-2020-NCLT-02324
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kredo-beauty-pvt-ltd-ib-1164nd2019-f603168f

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s Punjabi Accessoriezz Pvt Ltd, the Operational Creditor, against M/s Kredo Beauty Pvt. Ltd, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed default in payment for goods supplied to the Corporate Debtor.

## Facts

M/s Punjabi Accessoriezz Pvt Ltd, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Kredo Beauty Pvt. Ltd, the Corporate Debtor, for default in payment. The Operational Creditor is engaged in the business of trading beauty products and accessories. The Corporate Debtor issued a purchase order on 2018-09-18 for the supply of Mask Beauty Products. The Operational Creditor issued a proforma invoice, which was accepted by the Corporate Debtor. The Corporate Debtor requested changes to the invoice, including payment terms of 30 days, which the Operational Creditor accepted. Goods were delivered to the Corporate Debtor's warehouse on 2018-10-20, and the Corporate Debtor acknowledged the delivery. The

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## Issues and analysis

### Issue 1: Whether the present petition is complete and establishes the default in payment of the Operational …

**Ratio:** Section 9(5) of the IBC states that if the application is complete and there is a default

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**Reasoning:** The court found that the petition was complete and the amount of default was above Rs.

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The court applied Section 9(5) of the IBC to the facts, finding that the

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## Parties

- **Judges:** SMT INA MA…; Shri. L. N.…
- **Appellants:** M/s. Punjabi…
- **Respondents:** M/s Kredo Beauty…

## Timeline

- **2018-09-18 — Purchase…**: Corporate Debtor issued a purchase order…
- **2018-10-20 — Goods Del…**: Goods were delivered to 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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