# In the matter of SRK Kitchen Appliances Pvt. Ltd. CP (IB) No. 191-ALD-2018

> NCLT judgment dated 2018-08-01. Citation: TCN-2018-NCLT-01022. The case involves a petition filed by Butterfly Appliances, an operational creditor, under…

- **Court:** NCLT
- **Order date:** 1 Aug 2018
- **Citation:** TCN-2018-NCLT-01022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/srk-kitchen-appliances-pvt-ltd-cp-ib-no-191-ald-2018-90afcd47

## Summary

### Background

The case involves a petition filed by Butterfly Appliances, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against SRK Kitchen Appliances Private Limited, the corporate debtor, due to unpaid operational debt. The operational creditor claims that they supplied goods/raw materials to the corporate debtor, against which an outstanding amount of Rs. 16,42,032/- remained unpaid despite repeated requests and a demand notice. The corporate debtor failed to respond to the demand notice or clear the outstanding dues.

## Facts

Butterfly Appliances, the operational creditor, supplied goods/raw materials worth Rs. 23,42,032 to SRK Kitchen Appliances Private Limited, the corporate debtor. The corporate debtor made a partial payment of Rs. 7,00,000, leaving an outstanding balance of Rs. 16,42,032. Butterfly Appliances issued a demand notice dated 2018-03-20 to SRK Kitchen Appliances demanding the outstanding dues, which was delivered on 2018-08-23. The total outstanding due, including principal, interest, and GST, amounted to Rs. 30,91,993. SRK Kitchen Appliances failed to reply to the demand notice or raise any dispute regarding the debt. A cheque issued by the respondent was not credited to the account of the applicant. The operational debt owed by the corporate debtor is more than one lakh

…

## Issues and analysis

### Issue 1: Whether the operational creditor, Butterfly Appliances, has met the requirements under Section 9 of …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP if there is an

…

**Reasoning:** The court reasoned that Butterfly Appliances had submitted sufficient evidence, including

…

**Interpretation:** Section 9 of the IBC is interpreted to mean that an operational creditor can

…

**Application:** In this case, Butterfly Appliances successfully demonstrated the existence of

…

## Parties

- **Judges:** SH. V.P.…; Ms Saroj R…
- **Appellants:** Butterfly…
- **Respondents:** M/s SRK Kitchen…

## Timeline

- **2013-08-22 — Incorporation of…**: SRK Kitchen Appliances Private Limited…
- **2018-03-19 — Demand N…**: Butterfly Appliances issued a demand notice to SRK Kitchen Appliances demanding…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/srk-kitchen-appliances-pvt-ltd-cp-ib-no-191-ald-2018-90afcd47