# In the matter of Lexus India Ltd. IB-2932-ND-2019

> NCLT judgment dated 2020-03-04. Citation: TCN-2020-NCLT-01636. Trends Remedies Pvt Ltd, the Applicant/Operational Creditor (OC), filed an application under…

- **Court:** NCLT
- **Order date:** 4 Mar 2020
- **Citation:** TCN-2020-NCLT-01636
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lexus-india-ltd-ib-2932-nd-2019-ca884102

## Summary

### Background

Trends Remedies Pvt Ltd, the Applicant/Operational Creditor (OC), filed an application under Section 9 of the IBC to initiate proceedings against Lexus India Ltd, the Corporate Debtor (CD), for a default of Rs. 4,85,757/-. The OC is in the business of Pharmaceuticals Ram Material Bulk Drugs Chemicals & General Excipients since 2004. From the Financial Year 2016 to 2017, the OC continuously supplied raw material to the CD, resulting in a running account between them.

## Facts

Trends Remedies Pvt Ltd, an operational creditor in the pharmaceutical business, supplied raw materials to Lexus India Ltd, the corporate debtor, between 2016 and 2017. A running account existed between the two entities. The corporate debtor defaulted on a payment of Rs. 4,85,757/-. The operational creditor issued a demand notice, which was duly served on the corporate debtor. However, the corporate debtor did not respond to the demand notice or make the payment. The operational creditor then filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) to initiate the corporate insolvency resolution process (CIRP). The corporate debtor did not appear in court despite receiving notice, leading to an ex-parte hearing. The operational creditor

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the IBC is …

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

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**Reasoning:** The court reasoned that the operational creditor had complied with the requirements of

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied the provisions of Section 9 to the facts of the case, finding

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Trends Remedies…
- **Respondents:** Lexus Ind…

## Timeline

- **2016-11-18 — First Invoi…**: The first invoice for the supply of goods was issued by the Operational Creditor to the…
- **2017-02-24 — Last Payment…**: The last payment was received by the…

## 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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