# In the matter of Capital Electronics and Appliances Limited C.P (IB) No.724-KB-2020

> NCLT judgment dated 2023-01-16. Citation: TCN-2023-NCLT-05036. Iserve Solutions & Services Private Limited filed a Company Petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 16 Jan 2023
- **Citation:** TCN-2023-NCLT-05036
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/capital-electronics-and-appliances-limited-cp-ib-no724-kb-2020-6e6a3a29

## Summary

### Background

Iserve Solutions & Services Private Limited filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Capital Electronics and Appliances Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petition was filed due to the Corporate Debtor's failure to pay Rs. 10,75,468, which included interest, for goods (Inspiron Laptops) supplied by the Operational Creditor based on verbal contract.

## Facts

Iserve Solutions & Services Private Limited (Operational Creditor) supplied Inspiron Laptops to Capital Electronics and Appliances Limited (Corporate Debtor) based on a verbal contract. Two invoices were raised on 02 November, 2018 and 09 November, 2018, totaling Rs. 8,73,538. The Corporate Debtor made partial payments totaling Rs. 2,32,418 between 22 May, 2019 and 04 June, 2019. The Operational Creditor issued a demand notice on 19 December, 2019, claiming outstanding dues of Rs. 10,75,468, including interest at 24% p.a. The Corporate Debtor acknowledged a deficit payment of Rs. 6,18,556 but disputed the interest rate. The Corporate Debtor claimed price variations and reconciliation issues. The Operational Creditor claimed that the Corporate Debtor committed

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is complete and in compliance with the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6(1) of the

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**Reasoning:** The court found that the Operational Creditor had filed an affidavit as required by

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**Interpretation:** The court interpreted the requirements of Section 9 and Rule 6(1) to ensure

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**Application:** The court applied the ratio to the facts by examining the documents and

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** Rajesh Agarwal,…
- **Respondents:** Capital Electronic…

## Timeline

- **2018-11-02 — Invoice…**: Operational Creditor raised…
- **2018-11-09 — Invoice…**: Operational Creditor raised…

## 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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