# In the matter of Zenith Automotive Private Limited IB-577-ND-2020

> NCLT judgment dated 2021-09-24. Citation: TCN-2021-NCLT-01011. Redhex IT Solutions Private Limited, an operational creditor, filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 24 Sept 2021
- **Citation:** TCN-2021-NCLT-01011
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/zenith-automotive-private-limited-ib-577-nd-2020-8211d200

## Summary

### Background

Redhex IT Solutions Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Zenith Automotive Private Limited, the corporate debtor, for default in settling an amount of Rs 8,55,500, including CGST and SGST @ 9% towards Office Management Charges. The operational creditor issued a demand notice under Section 8 of IBC, but the corporate debtor did not reply. The corporate debtor later acknowledged the debt but claimed inability to pay due to business losses.

## Facts

Redhex IT Solutions Private Limited (Operational Creditor - OC) provided office management services to Zenith Automotive Private Limited (Corporate Debtor - CD). An invoice dated 2019-09-25 was issued for Rs 8,55,500. The OC issued a demand notice to the CD on 2020-01-05 under Section 8 of the Insolvency and Bankruptcy Code (IBC). The CD acknowledged the debt but stated an inability to pay due to business losses, including factors like demonetization and GST impact. The CD did not raise any dispute against the principal amount. The OC filed an application under Section 9 of IBC seeking initiation of CIRP.

## 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 Corporate Debtor admitted to availing the services of the

…

**Interpretation:** Section 9 of the IBC provides the framework for operational creditors to

…

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

…

## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Redhex IT…
- **Respondents:** Zenith Automotive…

## Timeline

- **2019-09-25 — Invoice…**: Corporate Debtor approached Operational Creditor for providing office management services…
- **2020-01-05 — Demand Notice…**: Operational Creditor issued the Demand Notice under Section 8 of IBC as per Rule 5(1)(a)…

## 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)

---

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/zenith-automotive-private-limited-ib-577-nd-2020-8211d200