# In the matter of Thay Lift and Shift Private Limited CP-1475-IB-2018

> NCLT judgment dated 2019-06-28. Citation: TCN-2019-NCLT-02743. The case involves an application filed by Vanjax Sales Pvt Ltd (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 28 Jun 2019
- **Citation:** TCN-2019-NCLT-02743
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/thay-lift-and-shift-private-limited-cp-1475-ib-2018-1bf02c05

## Summary

### Background

The case involves an application filed by Vanjax Sales Pvt Ltd (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, r/w Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, against Thay Lift And Shift Private Limited (Corporate Debtor). The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to outstanding payments. The Corporate Debtor failed to make payments as per a Memorandum of Understanding (MoU) entered into with the Operational Creditor.

## Facts

Vanjax Sales Pvt Ltd (Operational Creditor) and Thay Lift And Shift Private Limited (Corporate Debtor) entered into a Memorandum of Understanding (MoU) on 2018-02-26, where the Operational Creditor agreed to rent out 29 rental equipments to the Corporate Debtor. Clause 3 of the MoU stipulated a monthly rent of Rs.6.50 Lakhs plus 18% GST for the entire lot of equipment. Clause 5 stipulated an interest of 18% per annum on unpaid amounts in case of delayed payments. The Corporate Debtor defaulted from April 2018. In acknowledgement of its liability, the Corporate Debtor issued three cheques dated 2018-04-25, 2018-05-04 and 2018-06-25, which were dishonored. The Operational Creditor issued a demand notice dated 2018-11-08 under Section 8 of the I&B Code, 2016, which

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** The application under Section 9 of the I&B Code can be admitted if the operational

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**Reasoning:** The court reasoned that the Operational Creditor had demonstrated the existence of an

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**Interpretation:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP

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

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Appellants:** Vanjax Sales Pvt…
- **Respondents:** They Lift And…
- **Advocates:** D. Peruman…; A.M.El…

## Timeline

- **2018-02-26 — MoU Exec…**: Vanjax Sales Pvt Ltd and Thay Lift And Shift Private Limited entered into a Memorandum of…
- **2018-04-01 — Default Comme…**: The Corporate Debtor defaulted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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