# In the matter of Liveminds Solutions Private Limited C.P. (IB) 3547-2019

> NCLT judgment dated 2020-01-24. Citation: TCN-2020-NCLT-02190. Hemant Shah & Associates LLP, the Operational Creditor, filed a Company Petition seeking to…

- **Court:** NCLT
- **Order date:** 24 Jan 2020
- **Citation:** TCN-2020-NCLT-02190
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/liveminds-solutions-private-limited-cp-ib-3547-2019-0f9043d1

## Summary

### Background

Hemant Shah & Associates LLP, the Operational Creditor, filed a Company Petition seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Liveminds Solutions Private Limited, the Corporate Debtor, alleging default in payment for auditing services provided. The Operational Creditor claimed a total amount of Rs. 7,27,733/-, including the principal amount of Rs. 6,49,000/- and interest. The Corporate Debtor's director admitted the liability and default but stated the company's inability to repay due to its poor financial position.

## Facts

Hemant Shah & Associates LLP (Operational Creditor) provided auditing services to Liveminds Solutions Private Limited (Corporate Debtor). Four invoices were raised on 2018-11-02, totaling Rs. 6,49,000/-. The Operational Creditor claimed a total amount of Rs. 7,27,733/-, including principal and interest calculated at 18% p.a. A demand notice dated 2019-08-10 was sent to the Corporate Debtor, but no reply or payment was made. The Director of the Corporate Debtor admitted the liability and default, citing the company's poor financial position. The Operational Creditor invoked Section 8 and 9 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor is a company incorporated on 2005-11-16.

## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor fulfills the requirements of Section 9 of …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court found that the Operational Creditor had provided sufficient evidence of the

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

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**Application:** In this case, the Operational Creditor demonstrated the existence of a debt

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** Hemant Shah &…
- **Respondents:** Liveminds…
- **Advocates:** Raina B…

## Timeline

- **2005-11-16 — Corporate Debtor…**: Liveminds Solutions Private…
- **2018-11-02 — Invoices…**: Operational Creditor raised four invoices numbered ID-2906, ID–7810, ID-7820 & ID-2890,…

## 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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