# In the matter of Virgo Home Deziner Private Limited C.P. No. 342-I&BP-2018

> NCLT judgment dated 2019-02-19. Citation: TCN-2019-NCLT-04775. Smart Serve Houseware Private Limited filed a Company Petition against Virgo Home Deziner…

- **Court:** NCLT
- **Order date:** 19 Feb 2019
- **Citation:** TCN-2019-NCLT-04775
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/virgo-home-deziner-private-limited-cp-no-342-ibp-2018-681910f4

## Summary

### Background

Smart Serve Houseware Private Limited filed a Company Petition against Virgo Home Deziner Private Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petitioner alleged that the corporate debtor defaulted on a payment of Rs. 8,54,576.25 on 19.01.2014 for supplied houseware products. The petitioner issued a demand notice on 27.12.2017, which the corporate debtor disputed in its reply dated 20.01.2018. The petitioner had previously sent a demand notice on 06.01.2017, which was also disputed by the corporate debtor on 04.02.2017, who in fact demanded Rs. 11,78,222 from the petitioner.

## Facts

Smart Serve Houseware Private Limited (Petitioner) supplied houseware products to Virgo Home Deziner Private Limited (Corporate Debtor) from 11.05.2011 to 16.01.2014. The Corporate Debtor allegedly defaulted on a payment of Rs. 8,54,576.25/- due on 19.01.2014. The Petitioner issued a demand notice on 27.12.2017, which the Corporate Debtor disputed on 20.01.2018. Prior to this, the Petitioner sent a demand notice on 06.01.2017, also disputed by the Corporate Debtor on 04.02.2017, who counter-claimed Rs. 11,78,222/-. The Corporate Debtor, in an email dated 10.02.2015, assured payment by February or March 2015. The Corporate Debtor later raised disputes regarding tax invoices, advance payments, VAT, and debit notes. The Petitioner filed an additional affidavit stating

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is in compliance with the provisions of …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) requires the Adjudicating Authority to determine

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**Reasoning:** The court found that the Operational Creditor had demonstrated that a debt was due and

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**Interpretation:** Sections 8 and 9 of the IBC outline the procedure for initiating CIRP by an

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**Application:** The court determined that the Operational Creditor had met the requirements of

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Smart Serve…
- **Respondents:** Virgo Home…

## Timeline

- **2011-05-11 — Supply of Good…**: Petitioner started supplying houseware…
- **2014-01-16 — Supply of Goo…**: Petitioner stopped supplying houseware…

## 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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