# In the matter of Adjoin Dreamprojects & Agro Pvt. Ltd. IB No. 557-(ND)-2020

> NCLT judgment dated 2022-05-17. Citation: TCN-2022-NCLT-02728. M/s Bright Cove Goods, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 17 May 2022
- **Citation:** TCN-2022-NCLT-02728
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/adjoin-dreamprojects-agro-pvt-ltd-ib-no-557-nd-2020-cfc17fbc

## Summary

### Background

M/s Bright Cove Goods, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Adjoin Dreamprojects & Agro Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor had approached them for the supply of brochures and material on credit, promising payment upon supply. An invoice of Rs. 3,15,315/- was raised on 28.02.2019, but the corporate debtor failed to make the payment despite repeated requests and reminders. The applicant issued a demand notice dated 29.01.2020 under Section 8 of the IBC, 2016.

## Facts

M/s Bright Cove Goods (Operational Creditor) supplied brochures and materials to M/s Adjoin Dreamprojects & Agro Pvt. Ltd. (Corporate Debtor) on credit, with the promise of payment upon supply. An invoice for Rs. 3,15,315/- was raised on 28.02.2019. Despite repeated requests, the Corporate Debtor failed to make the payment. The Operational Creditor issued a demand notice on 29.01.2020 under Section 8 of the IBC. The Corporate Debtor admitted to the debt but claimed inability to pay due to financial difficulties. The Operational Creditor filed an application under Section 9 of the IBC to initiate CIRP. The Corporate Debtor had given no notice of dispute under Section 8(2) of the IBC. The Corporate Debtor's CIN is U70101DL2013PTC258100, incorporated on 19.09.2013.

## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9(5) of the IBC states that the Adjudicating Authority shall, within fourteen

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**Reasoning:** The court observed that the application was complete and that the corporate debtor had

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**Interpretation:** Section 9 of the IBC provides the procedure for an operational creditor to

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**Application:** The court applied Section 9 of the IBC to the facts of the case and found that

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** M/s Bright Cove…
- **Respondents:** M/s Adjoin…

## Timeline

- **2019-02-28 — Invoice R…**: Operational Creditor raised an invoice for…
- **2020-01-29 — Demand Notice…**: Operational Creditor issued a demand notice to the Corporate Debtor under Section 8 of…

## 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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