# In the matter of Sattur Sri Ganga Chitfunds (P) Ltd. CP-490-(IB)-CB-2018

> NCLT judgment dated 2018-07-25. Citation: TCN-2018-NCLT-01068. The case involves an application filed by Mr. A.S.E. Janakinathan, an Operational Creditor,…

- **Court:** NCLT
- **Order date:** 25 Jul 2018
- **Citation:** TCN-2018-NCLT-01068
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sattur-sri-ganga-chitfunds-p-ltd-cp-490-ib-cb-2018-6c01b773

## Summary

### Background

The case involves an application filed by Mr. A.S.E. Janakinathan, an Operational Creditor, against M/s. Sattur Shri Ganga Chits Funds (P) Ltd., the Corporate Debtor, 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. The Operational Creditor claimed an outstanding debt of Rs.4,80,000/- along with interest at 18% from 09.10.2017, stating that he provided chit funds to the Corporate Debtor, which were not repaid as per the agreed practice. The Corporate Debtor did not appear despite notice.

## Facts

Mr. A.S.E. Janakinathan, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Sattur Shri Ganga Chits Funds (P) Ltd., the Corporate Debtor. The claim was for an outstanding debt of Rs.4,80,000/- with 18% interest from 09.10.2017, arising from chit fund deposits made by the Operational Creditor to the Corporate Debtor. The Corporate Debtor failed to repay these funds. A demand notice was sent on 07.03.2018 under Section 8 of the I&B Code, which was delivered on 09.03.2018. The Corporate Debtor did not respond to the notice or appear before the court despite being served. The Operational Creditor complied with Section 9(3)(b) & (c) of the I&B Code by filing an affidavit. The Corporate

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## Issues and analysis

### Issue 1: Whether the application CP/490/(IB)/CB/2018 filed by the Operational Creditor under Section 9 of …

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

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**Reasoning:** The court observed that the Operational Creditor had provided evidence of the debt,

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts of the case, noting that the

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** A.S.E JAΝΑΚ…
- **Respondents:** Sattur Shri Ganga…; SATTUR SHRI GANGA…
- **Advocates:** K.M.A…; K.Shyam S…; +1 more

## Timeline

- **2018-03-07 — Demand N…**: Operational Creditor sent a Demand Notice to the Corporate Debtor under Section 8 of the…
- **2018-03-09 — Delivery of Demand…**: The Demand Notice was…

## 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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