# In the matter of RNM Infra Private Ltd. CP (IB) No. 1614-KB-2019

> NCLT judgment dated 2020-01-21. Citation: TCN-2020-NCLT-02236. The case involves an application filed by Prism Johnson Limited [RMC (INDIA) Division], the…

- **Court:** NCLT
- **Order date:** 21 Jan 2020
- **Citation:** TCN-2020-NCLT-02236
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rnm-infra-private-ltd-cp-ib-no-1614-kb-2019-186b7d9b

## Summary

### Background

The case involves an application filed by Prism Johnson Limited [RMC (INDIA) Division], the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against RNM Infra Private Ltd, the Corporate Debtor. The application was based on the Corporate Debtor's alleged default in paying an operational debt of Rs.20,62,726/- (including interest). The Corporate Debtor failed to appear and contest the claim despite notice.

## Facts

Prism Johnson Limited [RMC (INDIA) Division] filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against RNM Infra Private Ltd, claiming a default in payment of an operational debt amounting to Rs.20,62,726/- (including interest). The Operational Creditor had supplied materials to the Corporate Debtor in September 2018, based on a purchase order dated 28.04.2018. The Corporate Debtor made the last payment on 06.07.2018 and also executed a balance confirmation letter. A notice under Section 8 of the IBC was sent to the Corporate Debtor, and despite publication of notice in the 'Business Standard' dated 18.12.2019, the Corporate Debtor did not appear to contest the claim. The

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## Issues and analysis

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

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

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**Reasoning:** The Tribunal found that the Operational Creditor had produced all relevant documents to

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP

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**Application:** The Tribunal applied Section 9 to the facts, noting that the Operational

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## Parties

- **Judges:** Madan B.…
- **Appellants:** Prism Johnson…
- **Respondents:** RNM Infra Private…

## Timeline

- **2018-04-28 — Purchase Ord…**: Purchase order date for the supply of materials by the Operational Creditor to the…
- **2018-09-01 — Supply of Ma…**: Operational Creditor supplied…

## 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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