# In the matter of WSH Private Limited CP (IB) No. 601-9-NCLT-AHM-2019

> NCLT judgment dated 2021-02-01. Citation: TCN-2021-NCLT-03175. The case involves an application filed by Mr. Dhaval Kunjbihari Mandovara, Proprietor of M/s.…

- **Court:** NCLT
- **Order date:** 1 Feb 2021
- **Citation:** TCN-2021-NCLT-03175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/wsh-private-limited-cp-ib-no-601-9-nclt-ahm-2019-96802311

## Summary

### Background

The case involves an application filed by Mr. Dhaval Kunjbihari Mandovara, Proprietor of M/s. B-Solutions Management Consultants, as an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s WSH Private Limited, the Corporate Debtor. The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to an alleged default in payment for business contract services provided. The Operational Creditor claimed that the Corporate Debtor was indebted for a sum of Rs. 6,25,444/- for services rendered between 30.04.2018 and 29.03.2019. The Corporate Debtor admitted to availing the services and making partial payments but cited financial difficulties due to demonetization and GST

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## Facts

Mr. Dhaval Kunjbihari Mandovara, representing B-Solutions Management Consultants (Operational Creditor), filed a petition against WSH Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The Operational Creditor claimed that the Corporate Debtor owed Rs. 6,25,444/- for business contract services provided between 30.04.2018 and 29.03.2019. The Operational Creditor submitted invoices, a demand notice (Form 3) delivered on 20.06.2019, and other documents to support their claim. The Corporate Debtor admitted to availing the services and making partial payments but cited financial difficulties due to demonetization and GST as the reason for non-payment. The demand notice was served under Section 8 of the

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is maintainable under Section 9 of the …

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

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**Reasoning:** The court found that the application was filed within the limitation period, the

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**Interpretation:** Section 9 provides the framework for operational creditors to initiate CIRP,

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

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** B-Solutions…
- **Respondents:** WSH Private…; WSH Pvt…
- **Advocates:** Mrugesh…; Richi M…

## Timeline

- **2018-04-30 — First Date of…**: The first date of default as per the details…
- **2018-04-30 — Services Pr…**: The Operational Creditor provided business contract services to the Corporate Debtor from…

## 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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