# In the matter of Nice Projects Limited (IB)-2706(ND)-2019

> NCLT judgment dated 2020-02-07. Citation: TCN-2020-NCLT-02043. The case originates from a petition filed by Madhu Khandelwal, Proprietor of Tatar Trading…

- **Court:** NCLT
- **Order date:** 7 Feb 2020
- **Citation:** TCN-2020-NCLT-02043
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nice-projects-limited-ib-2706nd-2019-0653c262

## Summary

### Background

The case originates from a petition filed by Madhu Khandelwal, Proprietor of Tatar Trading Company (Operational Creditor), under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Nice Projects Limited (Corporate Debtor). The Corporate Debtor is engaged in the business of construction of residential complexes, warehouses, and other buildings. The Operational Creditor claims that the Corporate Debtor defaulted on payments for goods supplied.

## Facts

Madhu Khandelwal, proprietor of Tatar Trading Company (Operational Creditor), filed a petition against M/s. Nice Projects Limited (Corporate Debtor) under Section 9 of the IBC, 2016. The Corporate Debtor is involved in the construction business. The Operational Creditor claimed that the Corporate Debtor had raised two purchase orders (JD18POM000136 dated 2018-03-12 and JD19POM000006 dated 2018-04-13) for the supply of TMT steel. The Operational Creditor supplied goods against two invoices (GST/2017-18/235 dated 2018-03-10 and GST/2018-19/002 dated 2018-04-16) amounting to Rs. 13,79,098 and Rs. 23,97,916 respectively. The total liability of the Corporate Debtor was Rs. 37,77,014. A demand notice was sent on 2019-08-12 under Section 8 of the IBC, 2016, but the Corporate

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established a default in payment of the Operational Debt by …

**Ratio:** Section 9(5) of the IBC stipulates that if the Adjudicating Authority is satisfied that a

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**Reasoning:** The court reasoned that the Operational Creditor presented sufficient evidence, including

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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 court applied the ratio to the facts by noting that the Operational

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## Parties

- **Judges:** Ina Mal…; L. N. G…
- **Appellants:** Madhu Khan…
- **Respondents:** M/s Nice Projects…
- **Advocates:** Arjun As…; Vinod Cha…

## Timeline

- **2018-03-12 — Purchase Orde…**: Corporate Debtor issued purchase order…
- **2018-04-13 — Purchase Orde…**: Corporate Debtor issued purchase order…

## 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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