# In the matter of Topline Build-Tech Pvt. Ltd. (IB)-607(ND)-2017

> NCLT judgment dated 2018-02-16. Citation: TCN-2018-NCLT-01814. The case involves an operational creditor, Sh. Atul Gupta, who is a supplier of goods in the…

- **Court:** NCLT
- **Order date:** 16 Feb 2018
- **Citation:** TCN-2018-NCLT-01814
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/topline-build-tech-pvt-ltd-ib-607nd-2017-71f258ab

## Summary

### Background

The case involves an operational creditor, Sh. Atul Gupta, who is a supplier of goods in the construction industry, initiating a Corporate Insolvency Resolution Process (CIRP) against Topline Build-Tech Pvt. Ltd., the corporate debtor, due to unpaid bills. The corporate debtor had a long-standing relationship with the operational creditor but became irregular in payments in 2008. The corporate debtor issued two cheques in 2010-2011, which were dishonored. The operational creditor did not pursue legal remedies based on assurances of payment. On 26.03.2014, the corporate debtor paid Rs. 20,000 against one bounced cheque, but Rs. 1,85,770 remained unpaid towards the other cheque. The operational creditor filed a petition under Section 9 of the IBC, 2016.

## Facts

Sh. Atul Gupta, an operational creditor and supplier of goods in the construction industry, had a long-standing relationship with Topline Build-Tech Pvt. Ltd., the corporate debtor. In 2008, the corporate debtor began to make irregular payments. In 2010-2011, the corporate debtor issued two cheques to the operational creditor, which were subsequently dishonored. Despite the dishonored cheques, the operational creditor did not pursue legal action based on the corporate debtor's assurances of payment. On 2014-03-26, the corporate debtor paid Rs. 20,000 towards one of the bounced cheques. A balance of Rs. 1,85,770 remained unpaid for the other cheque. The operational creditor filed a petition under Section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor under Section 9 of the IBC, 2016 is …

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

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**Reasoning:** The Adjudicating Authority considered the evidence presented by the operational creditor

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

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**Application:** The operational creditor demonstrated that the corporate debtor had failed to

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Sh. Atul…
- **Respondents:** Topline Build-Tech…

## Timeline

- **2008-01-01 — Irregular P…**: The Corporate Debtor became…
- **2010-01-01 — Dishonored…**: The Corporate Debtor issued two cheques in 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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