# In the matter of Veracious Builders and Developers Pvt. Ltd. C.P.(IB)No.215-BB-2019

> NCLT judgment dated 2019-07-30. Citation: TCN-2019-NCLT-02224. The case involves an application filed by M/s Reddarrow Communications ('Petitioner') under…

- **Court:** NCLT
- **Order date:** 30 Jul 2019
- **Citation:** TCN-2019-NCLT-02224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/veracious-builders-and-developers-pvt-ltd-cpibno215-bb-2019-01903300

## Summary

### Background

The case involves an application filed by M/s Reddarrow Communications ('Petitioner') under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 6 of the Insolvency and Bankruptcy (AAA) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Veracious Builders and Developers Private Limited ('Respondent'). The application is based on the Corporate Debtor's alleged default of Rs. 35,64,175/-. The petitioner claims to have served a demand notice, and the respondent acknowledged the debt but failed to settle it. The petitioner seeks the appointment of an Interim Resolution Professional (IRP).

## Facts

M/s Reddarrow Communications ('Petitioner') filed C.P.(IB)No.215/BB/2019 under Section 9 of the IBC, 2016, seeking to initiate CIRP against M/s. Veracious Builders and Developers Private Limited ('Respondent') due to a default of Rs. 35,64,175/-. The Petitioner served a demand notice to the Respondent, who acknowledged the debt on 04.02.2019 but failed to settle it. The Respondent claimed to be facing financial difficulties. The Petitioner nominated Ms. Pratibha Khandelwal as the Interim Resolution Professional (IRP). The case was listed on 25.06.2019, 16.07.2019 and 30.07.2019. The Tribunal found the debt undisputed and admitted the application, initiating CIRP and appointing Ms. Khandelwal as IRP.

## Issues and analysis

### Issue 1: Whether the application filed by the Petitioner under Section 9 of the IBC, 2016 is maintainable …

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

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**Reasoning:** The Tribunal considered the pleadings and extant provisions of the Code and found that

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**Interpretation:** Section 9 provides the mechanism for operational creditors to trigger the

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**Application:** The Tribunal applied Section 9 to the facts, noting that the Petitioner had

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/S REDDARROW…
- **Respondents:** Veracious…; M/s. Veracious…
- **Advocates:** Manuju…

## Timeline

- **2019-01-10 — Demand Noti…**: Demand notice sent by the Petitioner to the Respondent in Form 3 & 4 under Insolvency and…
- **2019-01-25 — Demand Notice…**: The Petitioner served the Demand Notice in Form No.3 & 4 through Registered Post to 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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