# In the matter of Monica Electronics Limited (IB)-2257-ND-2019

> NCLT judgment dated 2019-11-04. Citation: TCN-2019-NCLT-00737. Adonis Electronics Pvt. Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 4 Nov 2019
- **Citation:** TCN-2019-NCLT-00737
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/monica-electronics-limited-ib-2257-nd-2019-4f7802be

## Summary

### Background

Adonis Electronics Pvt. Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against Monica Electronics Limited. The operational creditor, Adonis Electronics, claimed that Monica Electronics had defaulted on payments for goods supplied. The invoices were raised between April 5, 2018, and September 24, 2018, totaling Rs. 12,79,320/-.

## Facts

Adonis Electronics Pvt. Ltd., an operational creditor, engaged in the business of manufacturing and supplying air conditioners, supplied goods to Monica Electronics Limited, the corporate debtor, based on purchase orders. Invoices were raised between April 5, 2018, and September 24, 2018, totaling Rs. 12,79,320/-. Monica Electronics failed to make payments despite repeated reminders. Adonis Electronics issued a demand notice, which went unanswered. Monica Electronics acknowledged the liability but cited financial crises as the reason for non-payment. The outstanding liability exceeded Rs. 1 lakh, and there was no pre-existing dispute.

## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor, Adonis Electronics Pvt. Ltd., under Section …

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

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**Reasoning:** The court reasoned that the operational creditor had fulfilled the requirements under

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** In this case, the court applied Section 9 of the IBC to the facts presented and

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## Parties

- **Judges:** Ina Mal…; SH. L. N.…
- **Appellants:** Adonis Electronics…
- **Respondents:** Monica Electronics…

## Timeline

- **2018-04-05 — Invoice Perio…**: Invoices were raised…
- **2018-09-24 — Invoice Per…**: Invoices were raised…

## 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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