# In the matter of Solas Fire Safety Equipment Pvt Limited C.P. (IB)No. 184-BB-2020

> NCLT judgment dated 2020-09-09. Citation: TCN-2020-NCLT-00664. M/s. Aster Technologies Private Limited filed C.P.(IB)No.184/BB/2020 under Section 9 of the…

- **Court:** NCLT
- **Order date:** 9 Sept 2020
- **Citation:** TCN-2020-NCLT-00664
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/solas-fire-safety-equipment-pvt-limited-cp-ibno-184-bb-2020-2bedb626

## Summary

### Background

M/s. Aster Technologies Private Limited filed C.P.(IB)No.184/BB/2020 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Solas Fire Safety Equipment Private Limited, alleging a default of Rs.4,35,487.50/- along with interest at 18% per annum. The operational creditor, Aster Technologies, claimed to have supplied materials and completed work for the corporate debtor, Solas Fire Safety Equipment, related to the installation of a fire suppression system. Despite invoices raised and accepted, the corporate debtor failed to make full payment, leading to the initiation of CIRP.

## Facts

M/s. Aster Technologies Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against M/s. Solas Fire Safety Equipment Private Limited (Corporate Debtor) for a default of Rs.4,35,487.50/-. Aster Technologies supplied materials and completed the installation of a fire suppression system for Solas Fire Safety Equipment. An invoice for Rs.4,76,962.50/- was raised on 09.11.2016, and the Corporate Debtor deducted TDS. Despite repeated requests and a demand notice issued on 04.10.2019, the Corporate Debtor failed to pay the outstanding amount. The Corporate Debtor acknowledged the debt in a letter dated 13.03.2018 but failed to honor its commitment to clear the dues. The Adjudicating Authority noted

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in payment of the outstanding amount to the …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The Corporate Debtor acknowledged the debt in a letter dated 13.03.2018 but failed to

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**Interpretation:** The interpretation of Section 9 of IBC, 2016, allows an operational creditor to

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**Application:** The Corporate Debtor's failure to pay the outstanding amount, despite

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. Aster…
- **Respondents:** M/s.Solas Fire…

## Timeline

- **2016-05-27 — Work Ord…**: The Corporate Debtor placed its work order for installation of piranha, fire Suppression…
- **2016-11-09 — Invoice R…**: An invoice bearing No. ASTER/2016-17/IC113 for Rs.4,76,962.50/- was raised against 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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