# In the matter of Sangamam Chit Funds Private Limited IBA-211-2019

> NCLT judgment dated 2019-04-03. Citation: TCN-2019-NCLT-04172. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 3 Apr 2019
- **Citation:** TCN-2019-NCLT-04172
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sangamam-chit-funds-private-limited-iba-211-2019-9ee31578

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by an Operational Creditor, A. Vimal Deepak, against Sangamam Chit Funds Pvt. Ltd., the Corporate Debtor. The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, declare a moratorium, and appoint an Interim Resolution Professional (IRP).

## Facts

A. Vimal Deepak, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Sangamam Chit Funds Pvt. Ltd., the Corporate Debtor, for an outstanding amount of Rs.4,86,750/- as of 17.10.2018. The Corporate Debtor failed to pay this amount. The Operational Creditor was a successful bidder in a chit fund scheme run by the Corporate Debtor. The Corporate Debtor issued a cheque for the outstanding amount, which was returned due to insufficient funds on 16.12.2018. The Operational Creditor sent a demand notice dated 17.12.2018 under Section 8 of the I&B Code, 2016, to the Corporate Debtor. The Corporate Debtor's Managing Director admitted the company's inability to pay its debts. The Operational Creditor complied

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has fulfilled the requirements of law for the admission of the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for an

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**Reasoning:** The court observed that the Operational Creditor had submitted evidence of the

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**Interpretation:** Section 9 requires the operational creditor to demonstrate that a debt is due

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**Application:** In this case, the Operational Creditor provided sufficient evidence, including

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** A.Vimal D…
- **Respondents:** Sangamam Chit…; SANGAMAM CHIT…

## Timeline

- **2018-10-17 — Outstandin…**: Operational Creditor claims…
- **2018-11-19 — Cheque I…**: Corporate Debtor issued Cheque…

## 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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