# In the matter of Logical Jewellers Pvt. Ltd. (IB) 111 (ND) 2018

> NCLT judgment dated 2019-03-13. Citation: TCN-2019-NCLT-04446. The petitioner, M/s SRS Limited, as an Operational Creditor, initiated a Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 13 Mar 2019
- **Citation:** TCN-2019-NCLT-04446
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/logical-jewellers-pvt-ltd-ib-111-nd-2018-0972fe35

## Summary

### Background

The petitioner, M/s SRS Limited, as an Operational Creditor, initiated a Corporate Insolvency Process against the Respondent/Corporate Debtor, M/s Logical Jewellers Pvt. Ltd. The Operational Creditor is engaged in the business of Gold Jewellery and had supplied the same to the Corporate Debtor on mutually accepted terms as per their agreement dated 08.06.2009. Invoices were raised for which the Operational Creditor maintained a running account. The Corporate Debtor made only part payment despite the Operational Creditor's request to make complete payments. The Corporate Debtor made the last payment on 26.07.2017. The total operational debt is to the extent of Rs. 60,32,64,652/-.

## Facts

M/s SRS Limited, the petitioner, is an operational creditor engaged in the gold jewellery business. They supplied jewellery to M/s Logical Jewellers Pvt. Ltd., the corporate debtor, based on an agreement dated 08.06.2009. Invoices were raised, and a running account was maintained. The corporate debtor made only partial payments, leaving a total outstanding operational debt of Rs. 60,32,64,652/-. The operational creditor issued a notice under Section 8 of the IBC on 22.12.2017, which went unanswered. Subsequently, the operational creditor filed a petition for initiating the Corporate Insolvency Resolution Process (CIRP). The respondent did not appear despite being served, leading the court to proceed ex-parte.

## Issues and analysis

### Issue 1: Whether the petition for initiation of Corporate Insolvency Process by the Operational Creditor is …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

…

**Reasoning:** The court noted that the respondent was duly served but did not appear. The submissions

…

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

…

**Application:** Given the outstanding debt of Rs. 60,32,64,652/-, the unanswered notice under

…

## Parties

- **Judges:** Ina Mal…
- **Appellants:** M/s SRS L…
- **Respondents:** M/s Logical…

## Timeline

- **2009-06-08 — Agreement…**: Agreement between M/s SRS Limited and M/s Logical Jewellers Pvt. Ltd. for the supply of…
- **2017-07-26 — Last Pay…**: The Corporate Debtor made the last…

## 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/logical-jewellers-pvt-ltd-ib-111-nd-2018-0972fe35