# In the matter of Westwind Engineers Private Limited (IB) - 1090(ND) 2018

> NCLT judgment dated 2018-12-04. Citation: TCN-2018-NCLT-00200. Blue Star Limited, an Operational Creditor, filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 4 Dec 2018
- **Citation:** TCN-2018-NCLT-00200
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/westwind-engineers-private-limited-ib-1090nd-2018-e9f24ffb

## Summary

### Background

Blue Star Limited, an Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Westwind Engineers Private Limited, the Corporate Debtor, due to its inability to pay an operational debt of Rs. 46,19,969. The Operational Creditor provided air conditioning services to the Corporate Debtor. Despite repeated requests and reminders, the Corporate Debtor failed to liquidate the debt, and cheques issued in discharge of the liability were dishonored.

## Facts

Blue Star Limited, the Operational Creditor, provided air conditioning services to Westwind Engineers Private Limited, the Corporate Debtor. The Corporate Debtor failed to pay an outstanding amount of Rs. 46,19,969. Blue Star Limited sent repeated requests and reminders for payment, but the Corporate Debtor did not take any steps to reduce the liability. Cheques issued by the Corporate Debtor were dishonored with the remark "Exceeds Arrangement." Blue Star Limited issued a demand notice dated 2018-03-21 under Section 8 of the IBC, which was not replied to. The Corporate Debtor was served with notice of the petition but did not appear, leading the court to proceed ex-parte. The Operational Creditor filed necessary documents, including dishonored cheques, to

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational …

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

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**Reasoning:** The court noted that the Corporate Debtor failed to liquidate the outstanding liability

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** Ina Mal…
- **Appellants:** Blue Star L…
- **Respondents:** Westwind Engineers…; M/s Westwind…
- **Advocates:** Yashvar…; Smita…

## Timeline

- **2017-05-01 — Corporate Debtor…**: Westwind Engineers Private Limited approached Blue Star Limited for air conditioning…
- **2018-03-05 — Cheque Dish…**: Cheque bearing no 449647 drawn on Indian Overseas Bank was dishonored with remarks…

## 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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