# In the matter of Primrose Infratech Pvt. Ltd.(IB)-995(ND)-2018

> NCLT judgment dated 2018-12-21. Citation: TCN-2018-NCLT-00025. VMS Equipment Pvt. Ltd., an operational creditor engaged in leasing heavy machinery, filed a…

- **Court:** NCLT
- **Order date:** 21 Dec 2018
- **Citation:** TCN-2018-NCLT-00025
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/primrose-infratech-pvt-ltdib-995nd-2018-245d9e2e

## Summary

### Background

VMS Equipment Pvt. Ltd., an operational creditor engaged in leasing heavy machinery, filed a petition against Primrose Infratech Pvt. Ltd., a real estate developer and the corporate debtor, for outstanding dues. The corporate debtor had hired a Tower Crane Model TC6040 from the operational creditor under a work order dated 2015-05-18, with a monthly rent of Rs. 2,12,000. The work order was initially for 12 months and later extended to 2016-10-31. The operational creditor claimed an outstanding amount of Rs. 7,48,911, after adjusting for advances and payments received. A demand notice under Section 8 of the IBC was issued on 2018-04-18, but the corporate debtor failed to respond, leading to the filing of the insolvency petition.

## Facts

VMS Equipment Pvt. Ltd. (Operational Creditor) is in the business of leasing heavy machinery. Primrose Infratech Pvt. Ltd. (Corporate Debtor) is a real estate developer. The Corporate Debtor hired a Tower Crane Model TC6040 from the Operational Creditor vide a work order dated 2015-05-18, with a monthly rent of Rs. 2,12,000. The work order was initially for 12 months and later extended to 2016-10-31. The Operational Creditor claimed an outstanding amount of Rs. 7,48,911. A demand notice dated 2018-04-18 under Section 8 of the IBC was issued to which the Corporate Debtor failed to respond. The Corporate Debtor claimed they asked the Operational Creditor to remove the machines due to lack of work and financial difficulties. The Operational Creditor filed a petition for

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

**Ratio:** The admission by the Corporate Debtor of its inability to liquidate its financial

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**Reasoning:** The court reasoned that the Corporate Debtor's submission regarding financial

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**Interpretation:** The court interpreted the Corporate Debtor's statements as an implicit

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**Application:** The court applied the principle that an admission against interest is strong

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** VMS Equipment…
- **Respondents:** Primrose Infratech…

## Timeline

- **2015-05-18 — Work Orde…**: Corporate Debtor hired Tower Crane…
- **2016-10-31 — Work Order Ex…**: Work order extended to…

## 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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