# In the matter of Vasan Dental Hospitals Private Limited IBA-138-2020

> NCLT judgment dated 2021-04-09. Citation: TCN-2021-NCLT-02417. M/s. Bharath Dental Lab, represented by its Proprietor Mr. Shahul Hameed, filed an application…

- **Court:** NCLT
- **Order date:** 9 Apr 2021
- **Citation:** TCN-2021-NCLT-02417
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vasan-dental-hospitals-private-limited-iba-138-2020-abd8894b

## Summary

### Background

M/s. Bharath Dental Lab, represented by its Proprietor Mr. Shahul Hameed, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s. Vasan Dental Hospitals Private Limited, claiming to be an operational creditor. The petitioner claimed an outstanding amount of Rs. 17,81,627/- as of 17.12.2019, out of a total claim of Rs. 54,99,881/- for dental dentures and ceramic zirconiaprosthetic works supplied between 21-02-2012 and 21-09-2017. The respondent contended that payments were made on undisputed invoices and that they were not liable for defective/damaged/broken products.

## Facts

M/s. Bharath Dental Lab, the operational creditor, supplied dental dentures and ceramic zirconiaprosthetic works to M/s. Vasan Dental Hospitals Private Limited, the corporate debtor, between 21-02-2012 and 21-09-2017. The total claim amounted to Rs. 54,99,881/-, out of which Rs. 37,18,254/- was paid. The operational creditor claimed that Rs. 17,81,627/- was still due as of 17.12.2019. A legal notice was issued on 05.10.2017, followed by a demand notice on 15.11.2019 under Section 8 of the IBC, 2016. The corporate debtor contended that payments were made on undisputed invoices and that they were not liable for defective/damaged/broken products. The operational creditor argued that the corporate debtor fabricated the story of defective products to avoid payments. The

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## Issues and analysis

### Issue 1: Whether the documents filed by the operational creditor are sufficient to prove the existence of an …

**Ratio:** The burden of proof lies on the operational creditor to establish the existence of an

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**Reasoning:** The Adjudicating Authority observed that the operational creditor failed to provide

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**Interpretation:** The Insolvency and Bankruptcy Code requires the operational creditor to provide

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**Application:** In this case, the operational creditor's failure to provide purchase orders,

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** M/s. Bharath…
- **Respondents:** M/s. Vasan Dental…

## Timeline

- **2012-02-21 — Supply of Dental…**: The Petitioner supplied Dental Dentures and Ceramic Zirconiaprosthetic works to the…
- **2017-09-21 — End of Supply…**: The period during which the Petitioner supplied Dental Dentures and Ceramic…

## 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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