# In the matter of VMA Enterprises Pvt. Ltd. Company Petition (IB)No. 1135-ND-2019

> NCLT judgment dated 2020-05-29. Citation: TCN-2020-NCLT-01292. The case involves a petition filed by Panoli Intermediates (India) Pvt. Ltd., an operational…

- **Court:** NCLT
- **Order date:** 29 May 2020
- **Citation:** TCN-2020-NCLT-01292
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vma-enterprises-pvt-ltd-company-petition-ibno-1135-nd-2019-d49dffb0

## Summary

### Background

The case involves a petition filed by Panoli Intermediates (India) Pvt. Ltd., an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against VMA Enterprises Pvt. Ltd., the corporate debtor. The operational creditor supplied goods (normal paraffin, waksol, and AHD) to the corporate debtor since 2014. The corporate debtor allegedly defaulted on payments starting January 2017. The operational creditor issued a demand notice on 01.10.2018 after cheques issued by the corporate debtor were dishonored. The corporate debtor claimed the petition was not maintainable due to non-delivery of the demand notice and that outstanding dues were settled via an oral agreement. The corporate debtor

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## Facts

Panoli Intermediates (India) Pvt. Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against VMA Enterprises Pvt. Ltd. (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor supplied goods (normal paraffin, waksol, and AHD) to the Corporate Debtor since 2014 based on purchase orders. The Corporate Debtor defaulted on payments starting January 2017. The Operational Creditor issued a demand notice dated 01.10.2018 for Rs. 68,13,945/- after previous cheques were dishonored. The Corporate Debtor claimed non-receipt of the demand notice and settlement of dues through an oral agreement, supported by partial payments. The Corporate Debtor also alleged that

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## Issues and analysis

### Issue 1: Whether the present petition is maintainable under Section 9 of the Insolvency and Bankruptcy Code, …

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

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**Reasoning:** The court considered the submissions of both parties and the evidence presented,

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** In this case, the court found that the operational creditor had established the

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Panoli Intermediat…
- **Respondents:** VMA Enterprises…

## Timeline

- **2014-01-01 — Supply of…**: Operational Creditor started…
- **2017-01-01 — Default in…**: Corporate Debtor started…

## 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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