# In the matter of R. S. Motors Private Limited Company Petition No. (IB)-156-JPR-2019

> NCLT judgment dated 2019-09-30. Citation: TCN-2019-NCLT-01162. The case involves an application filed by M/s. Toyota Kirloskar Motor Private Limited…

- **Court:** NCLT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLT-01162
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/r-s-motors-private-limited-company-petition-no-ib-156-jpr-2019-6cf9f41f

## Summary

### Background

The case involves an application filed by M/s. Toyota Kirloskar Motor Private Limited ('Applicant'), an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('IBC, 2016') read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking initiation of Corporate Insolvency Resolution Process ('CIRP') against M/s. R.S. Motors Private Limited ('Corporate Debtor'). The Applicant claims that the Corporate Debtor defaulted in paying an amount of Rs. 3,44,39,048/- for invoices raised for spare parts of vehicles supplied to the Corporate Debtor. The Operational Creditor and Corporate Debtor had dealership agreements. The default occurred for invoices generated in June and July 2016.

## Facts

M/s. Toyota Kirloskar Motor Private Limited ('Operational Creditor') filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process ('CIRP') against M/s. R.S. Motors Private Limited ('Corporate Debtor'). The Operational Creditor claimed that the Corporate Debtor defaulted in paying Rs. 3,44,39,048/- for invoices related to spare parts supplied. The Operational Creditor and Corporate Debtor had dealership agreements. The Corporate Debtor was running dealership facilities under the name 'CHANDRA TOYOTA'. The Operational Creditor used an online software system for e-purchase orders. The default occurred for invoices generated in June and July 2016, with due dates of 10.07.2016 and 10.08.2016,

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## Issues and analysis

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

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

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**Reasoning:** The Tribunal perused the records and found that the Corporate Debtor had defaulted in

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** In this case, the Tribunal found that the Corporate Debtor had defaulted in

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## Parties

- **Judges:** POONDLA BHASKARA…; RaghuNa…
- **Appellants:** M/s. Toyota…
- **Respondents:** M/s. R.S. Motors…

## Timeline

- **2019-08-28 — Ex-parte pro…**: Tribunal proceeded ex-parte against the…
- **2019-09-20 — Order res…**: Submissions of learned counsel for the…

## 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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