# In the matter of Tribhovandas Bhimji Zaveri & Sons Retail Private Limited CP (IB) 2979-MB-C-II-2018

> NCLT judgment dated 2019-12-16. Citation: TCN-2019-NCLT-00147. Bhavi Jewellers, an operational creditor, filed a company petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 16 Dec 2019
- **Citation:** TCN-2019-NCLT-00147
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tribhovandas-bhimji-zaveri-sons-retail-private-limited-cp-ib-2979-mb-c-ii-2018-a4a1d6bf

## Summary

### Background

Bhavi Jewellers, an operational creditor, filed a company petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Tribhovandas Bhimji Zaveri & Sons Retail Private Limited, the corporate debtor, due to unpaid operational debt. The operational creditor claimed that the corporate debtor defaulted on payments for goods supplied between 02.11.2015 and 25.06.2018. The corporate debtor furnished information in Form 5 under Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016.

## Facts

Bhavi Jewellers, an operational creditor, filed a petition against Tribhovandas Bhimji Zaveri & Sons Retail Private Limited, the corporate debtor, under Section 9 of the IBC, seeking to initiate CIRP due to unpaid operational debt. The operational creditor claimed that it had supplied gold bars, diamonds, and gold ornaments to the corporate debtor between 02.11.2015 and 25.06.2018, amounting to Rs. 12,41,93,725.00. The invoices provided for payment terms within 75 days. The total debt due and payable was Rs. 6,10,42,439.00, as mentioned in the confirmation of accounts confirmed by the corporate debtor. The operational creditor served a demand notice dated 31.03.2018 on the corporate debtor, as required under Section 8 of the IBC. A payment of Rs. 10,00,000 was

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of a debt and default on the part of …

**Ratio:** Section 9 of the IBC requires the Operational Creditor to prove the existence of a debt

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**Reasoning:** The court reasoned that the Operational Creditor had submitted invoices for the supply of

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**Interpretation:** Section 9 of the IBC is interpreted to mean that the Operational Creditor must

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**Application:** In this case, the Operational Creditor provided invoices, a demand notice, and

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## Parties

- **Judges:** M.K. Sh…; Chandra Bha…
- **Appellants:** Bhavi Jew…
- **Respondents:** Tribhovandas…

## Timeline

- **2015-11-02 — Start of Good…**: Operational Creditor started supplying Gold Bar, Diamond and Gold ornaments to Corporate…
- **2018-03-31 — Demand Notice…**: Operational Creditor issued a demand notice to…

## 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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