# In the matter of Krishna Estate Developers Private Limited C.P. (IB) No. 2131(PB)-2019

> NCLT judgment dated 2020-01-04. Citation: TCN-2020-NCLT-02524. M/s. Dinesh Sanitary Store, the operational creditor/petitioner, filed a petition under Section…

- **Court:** NCLT
- **Order date:** 4 Jan 2020
- **Citation:** TCN-2020-NCLT-02524
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/krishna-estate-developers-private-limited-cp-ib-no-2131pb-2019-84c1a258

## Summary

### Background

M/s. Dinesh Sanitary Store, the operational creditor/petitioner, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Krishna Estate Developers Private Limited, the corporate debtor/respondent. The operational creditor claimed that the corporate debtor defaulted on payments for sanitary products supplied, with an outstanding amount of INR 15,74,244/- as of 30.06.2019, including interest. The corporate debtor contested the claim, alleging discrepancies in the statement of account, unsatisfactory quality of goods, and prior cash payments not reflected in the

…

## Facts

M/s. Dinesh Sanitary Store (Operational Creditor) claimed that Krishna Estate Developers Private Limited (Corporate Debtor) owed INR 15,74,244/- as of 30.06.2019 for supplied sanitary products. A demand notice was sent on 2019-06-28 under Section 8 of the Insolvency and Bankruptcy Code. The Corporate Debtor replied on 2019-07-09, denying liability, asserting cash payments and unsatisfactory goods quality. The Corporate Debtor's bank accounts were suspended since 2017-09-12. The Corporate Debtor claimed to have made cash payments to the Petitioner, evidenced by Annexures B, C, and D. The Corporate Debtor argued that the Operational Creditor concealed material facts and that only Rs. 1,15,629/- was due. The Operational Creditor did not propose an Interim Resolution

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default amounting to rupees one lac or above as required …

**Ratio:** Section 4 of the Insolvency and Bankruptcy Code, 2016, stipulates that the minimum amount

…

**Reasoning:** The NCLT observed that the Corporate Debtor itself admitted that at least Rs. 1,15,629/-

…

**Interpretation:** The interpretation of Section 4 requires a clear determination of whether the

…

**Application:** In this case, the Corporate Debtor's admission that Rs. 1,15,629/- was due,

…

## Parties

- **Judges:** M. M. K…; Saroj Ra…
- **Appellants:** M/S Dinesh…
- **Respondents:** Krishna Estate…

## Timeline

- **2019-06-28 — Demand N…**: The petitioner sent a demand notice to the…
- **2019-07-09 — Reply from Corporate…**: The Corporate Debtor sent a reply denying its…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/krishna-estate-developers-private-limited-cp-ib-no-2131pb-2019-84c1a258