# In the matter of Card Pro Solutions Private Limited

> NCLT judgment dated 2024-02-16. Citation: TCN-2024-NCLT-02563. Knowell Corporation, the Operational Creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 16 Feb 2024
- **Citation:** TCN-2024-NCLT-02563
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/card-pro-solutions-private-limited-f4c9b8ab

## Summary

### Background

Knowell Corporation, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Card Pro Solutions Private Limited, the Corporate Debtor. The Operational Creditor supplied goods to the Corporate Debtor between 20.06.2016 and 24.11.2017. The Corporate Debtor approached the Operational Creditor during Financial Year 2016-17 for the purchase of goods. The Operational Creditor issued ten invoices from February 2017 to November 2017, totaling Rs.22,12,069.19, which remained unpaid. Despite reminders, the Corporate Debtor failed to pay the amount. The Operational Creditor issued a demand notice on 11.03.2019, as required under Section 8 of the Code. The

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## Facts

Knowell Corporation (Operational Creditor) filed CP(IB) No.4481/MB/2019 under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Card Pro Solutions Private Limited (Corporate Debtor). The Operational Creditor supplied goods to the Corporate Debtor from 20.06.2016 to 24.11.2017. The Corporate Debtor approached the Operational Creditor during Financial Year 2016-17 for the purchase of goods. Ten invoices were issued by the Operational Creditor between February 2017 and November 2017, totaling Rs.22,12,069.19, which remained unpaid. A demand notice was issued on 11.03.2019 under Section 8 of the Code. The Corporate Debtor made a part payment of Rs.10,000 on 31.07.2019. The Corporate Debtor failed to provide any written reply or attend the

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The Adjudicating Authority observed that the Operational Creditor had established the

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP

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**Application:** The Operational Creditor's application was found to be complete and filed in

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Knowell Corporatio…
- **Respondents:** Card Pro Solutions…

## Timeline

- **2016-06-20 — Supply of Goods…**: Operational Creditor started…
- **2017-11-24 — Last Supply o…**: Operational Creditor made the last…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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