# In the matter of Pro Young International Pvt. Ltd. CP (IB) No. 603-9-HDB-2019

> NCLT judgment dated 2020-02-27. Citation: TCN-2020-NCLT-01780. The operational creditor filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Feb 2020
- **Citation:** TCN-2020-NCLT-01780
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pro-young-international-pvt-ltd-cp-ib-no-603-9-hdb-2019-d6f7b7b9

## Summary

### Background

The operational creditor filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, alleging default on an operational debt by the corporate debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP).

## Facts

M/s. Pragati Bio Care Pvt. Ltd., the operational creditor, filed a company petition against M/s. Pro Young International Pvt. Ltd., the corporate debtor, alleging a default of Rs. 83,34,399/-. With an interest rate of 24% per annum, the total outstanding amount claimed by the operational creditor was Rs. 1,07,04,623/-. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency & Bankruptcy (Application to the Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The operational creditor, engaged in nutraceutical and cosmeceutical products, had supplied medicinal drugs/products to the corporate debtor based on several purchase orders. The

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## Issues and analysis

### Issue 1: Whether the corporate debtor …

**Ratio:** The operational creditor successfully established the existence of an operational debt

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**Reasoning:** The corporate debtor failed to make payments for goods supplied, and cheques issued for

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**Interpretation:** The court interpreted the non-payment for goods, the dishonor of cheques, and

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**Application:** Given the evidence of unpaid invoices, dishonored cheques, and the corporate

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…; +1 more
- **Appellants:** Pragati Bio care…
- **Respondents:** Pro Young…
- **Advocates:** Mr.K.M…; S. Ramesh…; +1 more

## Timeline

- **January 16, 2018 — Invoice T…**: Invoice T000098 for Rs. 13,99,674/-…
- **February 10, 2018 — Invoice T…**: Invoice T000111 for Rs. 9,22,241/-…

## 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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