# In the matter of New Grand Realtors LLP CP (IB) No. 466-KB-2019

> NCLT judgment dated 2019-10-31. Citation: TCN-2019-NCLT-00763. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 31 Oct 2019
- **Citation:** TCN-2019-NCLT-00763
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/new-grand-realtors-llp-cp-ib-no-466-kb-2019-616505ea

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Spectrum Artcomm Private Limited (Operational Creditor) against New Town Grand Realtors LLP (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default amount of Rs. 3,55,323/- for printing assignments done for the Corporate Debtor, based on purchase orders. The Operational Creditor raised six invoices in the financial year 2017-18, which remained unpaid. A cheque issued by the Corporate Debtor in May 2018 for Rs. 1 lakh also bounced.

## Facts

Spectrum Artcomm Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against New Town Grand Realtors LLP (Corporate Debtor). The Operational Creditor claimed a default amount of Rs. 3,55,323/- for printing assignments done for the Corporate Debtor based on purchase orders. Six invoices raised in the financial year 2017-18 remained unpaid, and a cheque issued in May 2018 for Rs. 1 lakh bounced. The Operational Creditor provided documentary evidence and demonstrated compliance with Section 8 notice requirements. The relevance of these facts lies in establishing the existence of a debt and default, which are prerequisites for admitting an

…

## Issues and analysis

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

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

…

**Reasoning:** The court considered the documentary evidence provided by the Operational Creditor,

…

**Interpretation:** Section 9 is interpreted to mean that if an operational debt exists, a default

…

**Application:** The court applied the ratio to the facts by noting the existence of unpaid

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Spectrum Artcomm…
- **Respondents:** New Town Grand…

## Timeline

- **2017-01-01 — Invoices…**: The Operational Creditor raised six invoices in the financial year 2017-18 which remained…
- **2018-05-01 — Cheque B…**: A cheque issued by the Corporate…

## 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/new-grand-realtors-llp-cp-ib-no-466-kb-2019-616505ea