# In the matter of Aarcity Infrastructure Private Limited IB-2185-(ND)-2019

> NCLT judgment dated 2022-02-28. Citation: TCN-2022-NCLT-03947. Sun Control Systems, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 28 Feb 2022
- **Citation:** TCN-2022-NCLT-03947
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aarcity-infrastructure-private-limited-ib-2185-nd-2019-c7143343

## Summary

### Background

Sun Control Systems, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Aarcity Infrastructure Private Limited, the corporate debtor, for defaulting on a debt of Rs. 56,38,850. The operational creditor claimed that the corporate debtor failed to clear the outstanding debt for goods provided, specifically UPVC doors and windows for the 'Regency Park' project, based on purchase orders issued in 2015, 2016 and 2017. The operational creditor raised 21 invoices from 22.09.2015 to 28.12.2018. The operational creditor issued a statutory demand notice under Section 8 of the IBC, 2016, which the corporate debtor replied to, raising a dispute regarding

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## Facts

Sun Control Systems, an operational creditor and a micro category manufacturing enterprise, supplied UPVC doors and windows to Aarcity Infrastructure Private Limited for their 'Regency Park' project. The corporate debtor issued three purchase orders in 2015, 2016 and 2017. Sun Control Systems raised 21 invoices from 22.09.2015 to 28.12.2018. The total outstanding debt amounted to Rs. 56,38,850. After raising invoices, Sun Control Systems sent emails requesting payment, but the corporate debtor failed to pay. A statutory demand notice was issued on 03.06.2019 and delivered on 10.06.2019. The corporate debtor replied on 10.06.2019, raising a dispute regarding the goods delivered. The corporate debtor claimed the operational creditor was an unregistered partnership firm

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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 Adjudicating Authority considered the arguments and evidence presented by both

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

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**Application:** The Adjudicating Authority determined that the application was maintainable

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## Parties

- **Judges:** SH. P.S.N.…; SH. RAHUL…
- **Appellants:** Sun Control…
- **Respondents:** M/s Aarcity…

## Timeline

- **2015-01-01 — Purchase Order…**: Corporate Debtor approached the Operational Creditor in the year 2015 and issued three…
- **2015-09-22 — Invoices…**: Operational Creditor raised 21…

## 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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