# In the matter of Young Mind Restaurant Pvt. Ltd. (IB) 967(ND)2019

> NCLT judgment dated 2019-07-18. Citation: TCN-2019-NCLT-02451. The case involves an application by an Operational Creditor, M/s. Shree Bala Ji Super Foods,…

- **Court:** NCLT
- **Order date:** 18 Jul 2019
- **Citation:** TCN-2019-NCLT-02451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/young-mind-restaurant-pvt-ltd-ib-967nd2019-9d527cad

## Summary

### Background

The case involves an application by an Operational Creditor, M/s. Shree Bala Ji Super Foods, against a Corporate Debtor, M/s. Yong Mind rest Restaurant Pvt. Ltd., under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor had approached them to supply soft drinks and juices, and a running account was maintained for the invoices raised and payments received. However, payments became irregular, leading the Operational Creditor to stop supplies after 2019-01-19. Repeated requests for liquidation of dues were made. The Corporate Debtor issued a cheque of Rs. 3 lakhs, which was dishonored. A demand notice under Section 8 of the IBC was issued but not responded to. The Operational Creditor then filed the present

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## Facts

M/s. Shree Bala Ji Super Foods (Operational Creditor) supplied soft drinks and juices to M/s. Yong Mind rest Restaurant Pvt. Ltd. (Corporate Debtor). A running account was maintained for invoices and payments. Payments from the Corporate Debtor became irregular. The Operational Creditor stopped supplies on 2019-01-19. The Corporate Debtor issued a cheque of Rs. 3 lakhs to reduce the liability, but it was dishonored. The Operational Creditor issued a demand notice under Section 8 of the Insolvency and Bankruptcy Code, which was not responded to. The Operational Creditor filed a petition under Section 9 of the IBC. The Corporate Debtor did not appear after notice, and the proceedings were ex-parte.

## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** The ratio is based on the provisions of Section 9 of the Insolvency and Bankruptcy Code,

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**Reasoning:** The court reasoned that the Corporate Debtor failed to appear despite notice, and the

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if an operational debt is due,

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** Ina Mal…; V.K. SUB…
- **Appellants:** M/s. Shree Bala…
- **Respondents:** M/s. Yong Mind…

## Timeline

- **2019-01-19 — Supply St…**: Operational Creditor stopped supplying goods to the Corporate Debtor due to irregular…
- **N/A — Cheque Dish…**: A cheque of Rs. 3 lakhs issued by the…

## 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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