# In the matter of VRX Hospitality Services Pvt. Ltd. CP (IB) No. 437-9-NCLT-AHM-2019

> NCLT judgment dated 2021-01-18. Citation: TCN-2021-NCLT-03278. The case pertains to an application filed by M/s Care Global Services, an operational creditor,…

- **Court:** NCLT
- **Order date:** 18 Jan 2021
- **Citation:** TCN-2021-NCLT-03278
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vrx-hospitality-services-pvt-ltd-cp-ib-no-437-9-nclt-ahm-2019-5ede1eb3

## Summary

### Background

The case pertains to an application filed by M/s Care Global Services, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s VRX Hospitality Services Pvt. Ltd., the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed that the corporate debtor defaulted in paying an operational debt of Rs. 3,00,000 despite receiving a demand notice. The operational creditor provided consultancy services to the corporate debtor, who accepted a security deposit as part of the fees.

## Facts

M/s Care Global Services, an unregistered partnership firm, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s VRX Hospitality Services Pvt. Ltd. The operational creditor claimed that the corporate debtor defaulted on an operational debt of Rs. 3,00,000/- despite a demand notice dated 01.04.2019. The corporate debtor was to provide consultancy services to set up business and/or supplying BPO. On 22.05.2018, an agreement was executed between the parties. The corporate debtor received a security deposit of Rs. 3,00,000/- from the operational creditor. The corporate debtor did not render the required services. The operational creditor delivered a demand notice under Section 8 of IBC, 2016, on 01.04.2019. The corporate debtor did

…

## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

…

**Reasoning:** The court reasoned that the operational creditor had provided sufficient evidence of the

…

**Interpretation:** The interpretation of Section 9 involves determining whether the operational

…

**Application:** In this case, the court applied the ratio to the facts by finding that the

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Care Global…
- **Respondents:** VRX Hospitality…

## Timeline

- **2018-05-22 — Agreement Ex…**: The Corporate Debtor executed the agreement to provide the Operational Creditor services…
- **2019-04-01 — Demand N…**: The Operational Creditor delivered the Corporate Debtor Demand Notice under Section 8 of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/vrx-hospitality-services-pvt-ltd-cp-ib-no-437-9-nclt-ahm-2019-5ede1eb3