# In the matter of Cosmopolis Interiors Private Limited

> NCLT judgment dated 2024-08-13. Citation: TCN-2024-NCLT-00814. The case involves an application filed by Mr. Rakesh Sharma, the sole proprietor of M/s Rakesh…

- **Court:** NCLT
- **Order date:** 13 Aug 2024
- **Citation:** TCN-2024-NCLT-00814
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cosmopolis-interiors-private-limited-77445eac

## Summary

### Background

The case involves an application filed by Mr. Rakesh Sharma, the sole proprietor of M/s Rakesh Traders (Operational Creditor/Applicant), seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Cosmopolis Interiors Private Limited (Corporate Debtor/Respondent) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The applicant is in the business of supplying timber, plywood, wooden and moulding. The applicant alleges default on the part of the corporate debtor for non-payment of operational dues amounting to Rs. 12,29,027/-. The Corporate Debtor approached the Applicant for the supply of various types of woods, plywood, and several other goods that the Applicant deals in. An oral understanding was reached between the Applicant and the

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## Facts

Mr. Rakesh Sharma, the sole proprietor of M/s Rakesh Traders, filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Cosmopolis Interiors Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. M/s Rakesh Traders is in the business of supplying timber, plywood, wooden and moulding. The Corporate Debtor approached the Applicant for the supply of various types of woods, plywood, and several other goods that the Applicant deals in. An oral understanding was reached between the Applicant and the Corporate Debtor and pursuant to this understanding, the Corporate Debtor placed orders for various goods, which the Applicant duly fulfilled. Accordingly, the Applicant issued invoices to the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating …

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

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor failed to make payment of the

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**Interpretation:** The Adjudicating Authority interpreted Section 9 of the Code to mean that if

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**Application:** The Adjudicating Authority applied the provisions of Section 9 to the facts of

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** RAKESH S…
- **Respondents:** M/S COSMOPOLIS…

## Timeline

- **2012-01-16 — Incorporation of…**: M/s Cosmopolis Interiors…
- **2017-06-19 — Start of Transaction…**: The Applicant started supplying…

## 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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