# In the matter of Paramount Wheels Private Limited C.P. (IB) 1328-2019

> NCLT judgment dated 2019-05-29. Citation: TCN-2019-NCLT-03149. Shri Krishna Enterprises filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 29 May 2019
- **Citation:** TCN-2019-NCLT-03149
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/paramount-wheels-private-limited-cp-ib-1328-2019-6c2b3355

## Summary

### Background

Shri Krishna Enterprises filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Paramount Wheels Private Limited. The petitioner claimed that the corporate debtor defaulted on payments amounting to Rs. 24,59,310/- due on 27.12.2018 for labor services provided.

## Facts

Shri Krishna Enterprises (Petitioner) provided labor services to Paramount Wheels Private Limited (Corporate Debtor) from 12.12.2018 to 27.12.2018, raising invoices totaling Rs. 51,25,802/-. The Corporate Debtor paid Rs. 26,66,492/-, leaving an outstanding balance of Rs. 24,59,310/-. The Corporate Debtor failed to pay the outstanding amount by 27.12.2018, constituting a default. The Petitioner issued a demand notice on 2019-03-20 under Section 8 of the IBC, demanding the outstanding amount. The Corporate Debtor did not respond to the demand notice. The Corporate Debtor's counsel accepted the liability and default during the hearing. The Corporate Debtor's reply indicated the amount remained unpaid due to financial difficulties.

## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor is in compliance with the provisions of …

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

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**Reasoning:** The court was satisfied that the petition filed by the operational creditor complied with

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**Interpretation:** Section 9 provides the mechanism for operational creditors to trigger the

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**Application:** The court found that the petitioner had provided services, raised invoices, and

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Krishna Enterprise…
- **Respondents:** Paramount Wheels…

## Timeline

- **2018-12-12 — Start of Labor…**: Shri Krishna Enterprises began providing labor services to Paramount Wheels Private…
- **2018-12-27 — End of Labor…**: Shri Krishna Enterprises completed providing labor services to Paramount Wheels Private…

## 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)

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