# In the matter of Pet Metal Private Limited CP (IB) No. 85-9-NCLT-AHM-2019

> NCLT judgment dated 2020-08-20. Citation: TCN-2020-NCLT-00813. The case pertains to an application filed by Maloo Bhatt & Co., the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 20 Aug 2020
- **Citation:** TCN-2020-NCLT-00813
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pet-metal-private-limited-cp-ib-no-85-9-nclt-ahm-2019-74b764af

## Summary

### Background

The case pertains to an application filed by Maloo Bhatt & Co., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Pet Metal Private Ltd., the Corporate Debtor. The operational debt claimed is Rs. 3,02,303, relating to invoices raised for audit fees and other professional work done in the financial years 2017-2018 and 2018-2019. The Operational Creditor served a notice under Section 8 of the IBC on the Corporate Debtor on 05.12.2018. The Corporate Debtor did not reply to the notice or the application filed under Section 9.

## Facts

Maloo Bhatt & Co. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Pet Metal Private Ltd. (Corporate Debtor). The operational debt claimed is Rs. 3,02,303, which relates to invoices raised for audit fees and other professional work done in the financial years 2017-2018 and 2018-2019. A notice under Section 8 of the IBC was served on the Corporate Debtor on 05.12.2018. The Corporate Debtor did not reply to the notice or the application. The Operational Creditor proposed an IRP, whose consent was on record. The Adjudicating Authority found the debt to be more than Rs. 1 lakh and not barred by limitation. No plausible defense was presented by the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** The ratio is that if an operational debt exceeds Rs. 1 lakh, a notice under Section 8 has

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**Reasoning:** The Adjudicating Authority reasoned that the Operational Creditor had established an

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**Interpretation:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Maloo Bhatt and…
- **Respondents:** Pet Metal Private…; Pet Metal P…

## Timeline

- **2018-12-05 — Notice S…**: Notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, was served on the…
- **2020-07-20 — Order Si…**: Order was signed on…

## 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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