# In the matter of Rolex Cycles Private Limited CP (IB) No. 37-Chd-Pb-2017

> NCLT judgment dated 2017-07-13. Citation: TCN-2017-NCLT-00738. Hero Steels Limited, an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 13 Jul 2017
- **Citation:** TCN-2017-NCLT-00738
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rolex-cycles-private-limited-cp-ib-no-37-chd-pb-2017-579d3f15

## Summary

### Background

Hero Steels Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Rolex Cycles Private Limited, the corporate debtor, for non-payment of outstanding dues. The operational creditor claimed that goods were supplied to the corporate debtor between 08.07.2015 and 31.05.2016, and despite sending demand notices, no payment was received. The corporate debtor raised objections, primarily concerning the lack of a proper affidavit as required by Section 9(3) of the IBC.

## Facts

Hero Steels Limited (operational creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Rolex Cycles Private Limited (corporate debtor) due to unpaid operational debt. Goods were supplied by Hero Steels to Rolex Cycles between 08.07.2015 and 31.05.2016. The outstanding balance as of 03.06.2016 was ₹2,08,00,577.99. Hero Steels sent a balance confirmation letter, and Rolex Cycles confirmed an outstanding amount of ₹2,08,00,578/- on 03.11.2016. Demand notices were sent by Speed Post, received by Rolex Cycles on 21.04.2017, but no payment was made. Hero Steels also submitted bank statements showing no payments received from Rolex Cycles. The petition was filed on 13.06.2017. Rolex Cycles objected, claiming a lack of proper affidavit

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## Issues and analysis

### Issue 1: Whether the operational creditor, Hero Steels Limited, complied with the requirements of Section 9 …

**Ratio:** Section 9 of the IBC outlines the procedure for initiating the corporate insolvency

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**Reasoning:** The court examined the documents and evidence presented by the operational creditor,

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**Interpretation:** Section 9 of the IBC is interpreted to require strict compliance with the

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**Application:** In this case, the court found that the operational creditor had complied with

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** Hero Steels…
- **Respondents:** Rolex Cycles…

## Timeline

- **2015-07-08 — Goods Sup…**: Goods were supplied by Hero Steels Limited to Rolex Cycles Private Limited between…
- **2016-06-03 — Outstanding…**: The outstanding balance as of…

## 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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