# In the matter of Avail Holding Limited

> NCLT judgment dated 2024-01-29. Citation: TCN-2024-NCLT-02865. VA Realcon Private Limited, an operational creditor (OC), filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 29 Jan 2024
- **Citation:** TCN-2024-NCLT-02865
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avail-holding-limited-966d9854

## Summary

### Background

VA Realcon Private Limited, an operational creditor (OC), filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Avail Holding Limited, the corporate debtor (CD), due to a default in payment. The OC claimed that the CD failed to pay Rs. 1,14,28,500/- for the sale of 1,16,620 shares of Macor Packaging Limited. Despite raising an invoice dated 14.10.2019 and issuing reminder letters, the CD did not make the payment. The OC then served a demand notice to the CD. The CD admitted to the debt and default in its reply but sought time for settlement. The matter was previously dismissed due to lack of proof of ownership of shares by the OC, but the order was set aside by NCLAT.

## Facts

VA Realcon Private Limited (Operational Creditor) sold 1,16,620 shares of Macor Packaging Limited to Avail Holding Limited (Corporate Debtor) for Rs. 1,14,28,500/- on 14.10.2019. An invoice was raised on the same date. Despite reminders, the Corporate Debtor failed to make the payment. A demand notice was issued under Section 8 of the IBC, 2016. The Corporate Debtor admitted the debt and default in its reply. The application was initially dismissed due to lack of proof of ownership of shares by the Operational Creditor, but the order was set aside by NCLAT. The Operational Creditor annexed a contract note and invoice dated 14.10.2019. A share certificate was also available on record. The Corporate Debtor did not dispute the ownership of the shares during the hearing.

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC, 2016, is complete and meets the requirements …

**Ratio:** Section 9(5) of the IBC, 2016, specifies the conditions for admitting an application,

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**Reasoning:** The court examined the application and found that it was complete. The court noted that

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**Interpretation:** Section 9 of the IBC, 2016, provides the framework for initiating the Corporate

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**Application:** The court applied Section 9(5) of the IBC, 2016, to the facts of the case and

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** VA Realcon…
- **Respondents:** Avail Holding…

## Timeline

- **2019-10-14 — Sale of Shares and…**: VA Realcon Private Limited sold 1,16,620 shares of Macor Packaging Limited to Avail…
- **2020-09-18 — Reminder…**: VA Realcon Private Limited issued a reminder letter to Avail Holding Limited for 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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