# In the matter of Midas Infra Trade Ltd. C.P. No. IB-311-(ND)-2019

> NCLT judgment dated 2019-11-20. Citation: TCN-2019-NCLT-00539. Hariprasad Gopikrishna Jewellers Pvt. Ltd. filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 20 Nov 2019
- **Citation:** TCN-2019-NCLT-00539
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/midas-infra-trade-ltd-cp-no-ib-311-nd-2019-ad160f3d

## Summary

### Background

Hariprasad Gopikrishna Jewellers Pvt. Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate corporate insolvency resolution process (CIRP) against Midas Infra Trade Ltd. The application was based on an alleged default in payment of Rs. 4,15,60,309/-, including interest, for the supply of gold bars. The applicant claimed that HDC Private Limited, initially the recipient of the goods, had its debts taken over by Midas Infra Trade Limited through an agreement. The applicant issued a demand notice under Section 8 of the Code, which the respondent contested, claiming a sum of INR 1,08,50,341/- was due from the applicant. The respondent also alleged that the applicant had been supplied with On Approval Finished Jewelry

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## Facts

Hariprasad Gopikrishna Jewellers Pvt. Ltd. (Applicant) sought to initiate CIRP against Midas Infra Trade Ltd. (Respondent) for a default of Rs. 4,15,60,309/- related to the supply of gold bars. HDC Private Limited was initially the recipient of the goods, with Midas Infra Trade Limited later taking over the debts via an agreement dated 2018-01-10. The Applicant issued a demand notice on 2018-12-31 under Section 8 of the IBC. The Respondent denied the debt, claiming INR 1,08,50,341/- was due from the Applicant and that the Applicant had been supplied On Approval Finished Jewelry worth INR 4,31,64,010/-. The Respondent issued an invoice on 2018-12-30 for the jewelry. The Applicant alleged the invoice was fabricated and the Respondent filed GST returns only after

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## Issues and analysis

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

**Ratio:** The Insolvency and Bankruptcy Code, 2016 requires the applicant to prove the existence of

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**Reasoning:** The Tribunal was convinced that the Applicant had adequately proved that there was a debt

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**Interpretation:** The existence of a debt and default is a fundamental requirement for initiating

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**Application:** In this case, the Tribunal found that the Applicant had provided sufficient

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** Hariprasad…
- **Respondents:** Midas Infra Trade…

## Timeline

- **2017-04-01 — Due Amount…**: Applicant followed up with HDC for payments of…
- **2018-01-09 — Due Amount…**: Applicant followed up with HDC for payments of…

## 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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