# In the matter of Avail Holding Limited

> NCLT judgment dated 2022-08-17. Citation: TCN-2022-NCLT-01354. VA Realcon Private Limited, the Operational Creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 17 Aug 2022
- **Citation:** TCN-2022-NCLT-01354
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avail-holding-limited-3dcde1e1

## Summary

### Background

VA Realcon Private Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Avail Holding Limited, the Corporate Debtor. The claim arose from the sale of shares of Macor Packaging Limited by VA Realcon to Avail Holding for a consideration of Rs. 1,14,28,500/-. The Operational Creditor contended that the Corporate Debtor failed to make the payment despite repeated reminders and a demand notice.

## Facts

VA Realcon Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Avail Holding Limited (Corporate Debtor). The claim is based on the sale of 1,16,620 shares of Macor Packaging Limited by the Operational Creditor to the Corporate Debtor for Rs. 1,14,28,500/-. The Operational Creditor issued a demand notice on 06.11.2020 under Section 8 of IBC 2016, which was served on 09.11.2020. The Operational Creditor claimed that the Corporate Debtor failed to make the payment despite repeated assurances. The Operational Creditor's primary business is dealing in immovable properties. The sales bill and contract note lacked the CIN number of the applicant

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of an unpaid debt and default by the …

**Ratio:** The burden of proof lies on the Operational Creditor to establish the existence of a debt

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**Reasoning:** The NCLT reasoned that the Operational Creditor failed to provide sufficient evidence to

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**Interpretation:** Section 9 of the IBC requires the Operational Creditor to provide credible

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**Application:** In this case, the NCLT applied the principle that the Operational Creditor must

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## Parties

- **Judges:** Sh. Dharminder…; SH. L. N.…
- **Appellants:** VA Realcon…
- **Respondents:** Avail Holding…

## Timeline

- **2019-10-14 — Sale of S…**: Operational Creditor sold 1,16,620 shares of Macor Packaging Limited to the Corporate…
- **2020-09-18 — Reminder…**: Operational Creditor served a reminder letter to the Corporate Debtor regarding the…

## 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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