# In the matter of New Vardhman Vitrified Pvt. Ltd. C.P. (I.B) No. 68-NCLT-AHM-2019

> NCLT judgment dated 2020-03-20. Citation: TCN-2020-NCLT-01431. Asian Minerals filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 20 Mar 2020
- **Citation:** TCN-2020-NCLT-01431
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/new-vardhman-vitrified-pvt-ltd-cp-ib-no-68-nclt-ahm-2019-ad861ed7

## Summary

### Background

Asian Minerals filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against New Vardhman Vitrified Private Ltd for unpaid operational debt. The petitioner claimed Rs. 80,56,472/- towards goods supplied, supported by a demand notice dated 20.11.2018. The respondent argued that there was inter se rivalry and the petition was filed with malafide intentions to take revenge.

## Facts

Asian Minerals, a partnership firm, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against New Vardhman Vitrified Private Ltd for an unpaid operational debt of Rs. 80,56,472/-. The petitioner claimed to have supplied goods to the corporate debtor and issued a demand notice dated 20.11.2018. The respondent argued that the petitioner and the corporate debtor are related and there is inter se rivalry between them, leading to several complaints and FIRs. The respondent also pointed out that the demand notice was issued by an advocate without proper authorization. The respondent further submitted that the petition was filed with mala fide intentions to take revenge. The petitioner is represented by Shri Rajeshbhai Mavjibhai

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## Issues and analysis

### Issue 1: Whether the application filed by Asian Minerals under Section 9 of the Insolvency and Bankruptcy …

**Ratio:** The objective of the IB Code is resolution, not recovery or arm-twisting. The

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**Reasoning:** The court found that there was inter se rivalry between the operational creditor and the

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**Interpretation:** The IB Code aims to reorganize and resolve insolvency of corporate persons in a

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Asian Min…
- **Respondents:** New Vardhman…

## Timeline

- **2018-11-20 — Demand Notice…**: The Petitioner issued a Demand Notice for Rs.80,56,472/- along with invoices for the…
- **2020-03-20 — Order Del…**: The NCLT delivered the order dismissing the…

## 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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