# In the matter of Prashant Impex Private Limited C.P. (IB) No. 122-KB-2019

> NCLT judgment dated 2019-06-27. Citation: TCN-2019-NCLT-02767. M/S Cobra Sentinal Private Limited, the Operational Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 27 Jun 2019
- **Citation:** TCN-2019-NCLT-02767
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prashant-impex-private-limited-cp-ib-no-122-kb-2019-74dbeb87

## Summary

### Background

M/S Cobra Sentinal Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/S Prashant Impex Private Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The claim was for Rs. 5,46,999.95, representing unpaid operational debt, including interest, for security services provided by the Operational Creditor to the Corporate Debtor since 2011. The Corporate Debtor defaulted on payments from 2017 onwards, despite repeated reminders and a statutory demand notice.

## Facts

M/S Cobra Sentinal Private Limited (Operational Creditor) provided security services to M/S Prashant Impex Private Limited (Corporate Debtor) at their factory premises since 2011. The Corporate Debtor hired the Operational Creditor vide letter dated 23.06.2011. The Operational Creditor raised monthly bills, and payments were made until 2017. From 2017, the Corporate Debtor started defaulting on payments. The Operational Creditor sent reminder letters dated 14.08.2017, 20.10.2017, 30.11.2017, 10.03.2018, and 10.06.2018, requesting payment. A statutory demand notice was issued on 19.12.2018 under Section 8 of the I&B Code, 2016. The Corporate Debtor accepted the default in its reply dated 28.12.2018 but failed to make payments. The total unpaid amount claimed was Rs.

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

**Ratio:** Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016, specifies the conditions

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**Reasoning:** The court found that the Operational Creditor had furnished copies of invoices demanding

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**Interpretation:** Section 9 of the I&B Code outlines the procedure for an operational

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**Application:** The court applied the provisions of Section 9 of the I&B Code to the facts

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## Parties

- **Judges:** Madan B.…
- **Appellants:** M/S Cobra…
- **Respondents:** M/S Prashant…; M/S Prashant…

## Timeline

- **2011-01-01 — Security Services…**: M/S Cobra Sentinal Private Limited began providing security services to M/S Prashant…
- **2011-06-23 — Letter of Eng…**: The Corporate Debtor hired the Operational…

## 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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