# In the matter of Mars Buildmart Private Limited Company Petition No. IB-251-ND-2020

> NCLT judgment dated 2020-12-16. Citation: TCN-2020-NCLT-00061. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Dec 2020
- **Citation:** TCN-2020-NCLT-00061
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mars-buildmart-private-limited-company-petition-no-ib-251-nd-2020-02e5b7ac

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/S INDSAO INFRATECH, an operational creditor, through Mr. Rajesh Bhardwaj, against M/S MARS BUILDMART PRIVATE LIMITED, the corporate debtor. The application seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor for its inability to liquidate its debt. Two agreements were executed between the applicant and the corporate debtor for internal plumbing and electrical work. Settlement agreements were signed, and post-dated cheques were issued by the corporate debtor, which were later dishonored due to insufficient funds.

## Facts

M/S INDSAO INFRATECH, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/S MARS BUILDMART PRIVATE LIMITED, the corporate debtor. Two agreements were executed between the parties on 2016-11-24 and 2017-03-15 for plumbing and electrical work. Settlement agreements were signed, with the corporate debtor issuing post-dated cheques totaling Rs. 98,71,429/- and Rs. 1,02,34,337/-. These cheques were dishonored due to insufficient funds. A demand notice was sent by the operational creditor on 2019-10-23 under Section 8 of the IBC. The corporate debtor failed to appear before the Adjudicating Authority. The operational creditor claimed Rs. 2,02,05,776/- including interest at 18%. The applicant,

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## Issues and analysis

### Issue 1: Whether the Applicant has established the existence of debt and default on the part of the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency

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**Reasoning:** The court observed that the Applicant had clearly established the existence of debt based

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**Interpretation:** The legal issue revolves around the interpretation of Section 9 of the IBC,

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** DEEPTI M…; SUMΙΤΑ PURK…
- **Appellants:** M/S INDSAO…
- **Respondents:** M/S MARS BUILDMART…
- **Advocates:** Harshal…

## Timeline

- **2016-11-24 — Agreement Ex…**: First agreement executed between M/S INDSAO INFRATECH and M/S MARS BUILDMART PRIVATE…
- **2017-03-15 — Agreement Ex…**: Second agreement executed between M/S INDSAO INFRATECH and M/S MARS BUILDMART PRIVATE…

## 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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