# In the matter of MPl Automobiles Agency Private Limited CP-1362-IB-2018

> NCLT judgment dated 2019-10-24. Citation: TCN-2019-NCLT-00821. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 24 Oct 2019
- **Citation:** TCN-2019-NCLT-00821
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mpl-automobiles-agency-private-limited-cp-1362-ib-2018-a230949e

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Opulent Auto Care Private Limited (Operational Creditor) against MPL Automobiles Agency Private Limited (Corporate Debtor). The Operational Creditor claimed a default of Rs. 10,41,149/- as of 13.08.2018. The Corporate Debtor was incorporated on 21.08.2003. The Operational Creditor acted as a channel partner for WAXOYL AG car care products, and the debt arose from services provided to the Corporate Debtor related to exterior care, paint protection, and engine care. The Operational Creditor issued a demand notice under Section 8 of the I&B Code on 16.08.2018.

## Facts

Opulent Auto Care Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against MPL Automobiles Agency Private Limited (Corporate Debtor) for a default of Rs. 10,41,149/- as of 13.08.2018. The debt comprised Rs. 7,74,917.00 outstanding as of 30.04.2016, and Rs. 2,66,232.00 as interest at 15% till 13.08.2018. The Corporate Debtor was incorporated on 21.08.2003. The Operational Creditor acted as a channel partner for WAXOYL AG car care products, and the debt arose from services provided to the Corporate Debtor related to exterior care, paint protection, and engine care. The Operational Creditor issued a demand notice under Section 8 of the I&B Code on 16.08.2018. The Corporate Debtor did not reply to

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9(5) of the IBC states that the Adjudicating Authority shall admit the

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**Reasoning:** The Tribunal considered the documents filed by the Operational Creditor, including the

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

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**Application:** The Tribunal applied Section 9(5) of the IBC to the facts of the case, noting

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Opulent Auto Care…
- **Respondents:** MPL Automobiles…

## Timeline

- **2018-08-16 — Demand Notice…**: The Operational Creditor issued a demand notice under Section 8 of the I&B Code, 2016, to…
- **2019-03-20 — Order Granting Time to…**: The Corporate Debtor entered appearance through its Counsel, and time was granted to file…

## 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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