# In the matter of Pacific Shares and Stock Broker Limited CP (IB) No. 3116 (MB) of 2019

> NCLT judgment dated 2021-07-28. Citation: TCN-2021-NCLT-01566. The case pertains to an application filed by Mayank Arora & Co., an operational creditor, under…

- **Court:** NCLT
- **Order date:** 28 Jul 2021
- **Citation:** TCN-2021-NCLT-01566
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pacific-shares-and-stock-broker-limited-cp-ib-no-3116-mb-of-2019-9c867b41

## Summary

### Background

The case pertains to an application filed by Mayank Arora & Co., an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Pacific Shares and Stock Broker Limited, the corporate debtor. The operational creditor claimed that the corporate debtor had defaulted on payments for professional services rendered between August 3, 2015, and March 31, 2019, totaling Rs. 16,61,583. A demand notice was issued on June 4, 2019, under Section 8 of the IBC, but the corporate debtor failed to make the payment.

## Facts

Mayank Arora & Co. (Operational Creditor) filed a company petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Pacific Shares and Stock Broker Limited (Corporate Debtor). The Operational Creditor claimed that it provided professional services to the Corporate Debtor from August 3, 2015, to March 31, 2019, raising invoices for a total of Rs. 16,61,583. A demand notice was issued on June 4, 2019, under Section 8 of the IBC, but the Corporate Debtor failed to pay the amount. The Corporate Debtor filed an affidavit with routine denials but also requested an amicable settlement due to its poor financial position. During final arguments on July 28, 2021, the Corporate Debtor's counsel conceded that the Corporate Debtor was unable to pay the

…

## Issues and analysis

### Issue 1: Whether the company petition filed by the operational creditor under Section 9 of the Insolvency …

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

…

**Reasoning:** The NCLT considered the fact that the operational creditor had provided professional

…

**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

…

**Application:** In this case, the operational creditor fulfilled the requirements under Section

…

## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** M/s mayank Arora…
- **Respondents:** Pacific Shares…
- **Advocates:** Harsh Kes…; Jesai S…

## Timeline

- **2015-08-03 — Start of Professional…**: Operational Creditor started providing…
- **2019-03-31 — End of Professional…**: Operational Creditor completed providing…

## 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)

---

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/pacific-shares-and-stock-broker-limited-cp-ib-no-3116-mb-of-2019-9c867b41