# In the matter of  Deneb Automotives Private Limited CP (IB) No.534-Chd-Hry-2019

> NCLT judgment dated 2022-09-22. Citation: TCN-2022-NCLT-00959. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s Metal…

- **Court:** NCLT
- **Order date:** 22 Sept 2022
- **Citation:** TCN-2022-NCLT-00959
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/deneb-automotives-private-limited-cp-ib-no534-chd-hry-2019-9bd988b3

## Summary

### Background

The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s Metal Trading Co. (Operational Creditor) represented by Mr. Purshottam Lal Gupta, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Deneb Automotives Private Limited (Corporate Debtor). The Operational Creditor claimed default on the part of the Corporate Debtor for the supply of goods. The Adjudicating Authority considered whether the demand notice was properly served, whether the operational debt was disputed, and whether the application was filed within the limitation period.

## Facts

M/s Metal Trading Co. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Deneb Automotives Private Limited (Corporate Debtor). The Corporate Debtor is engaged in the business of manufacturing and supplying household accessories. The Operational Creditor supplied CR Steel strips to the Corporate Debtor from March 2018 and issued various invoices. The amount claimed to be in default is Rs.39,35,057/- (including interest of Rs. 3,33,608/-), and the date on which default occurred is 14.04.2018. A demand notice in Form 3 dated 30.07.2019 was issued to the Corporate Debtor. The Corporate Debtor did not appear despite repeated service and was set ex parte.

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## Issues and analysis

### Issue 1: Whether the demand notice in Form 3 …

**Ratio:** The petitioner has placed a copy of the registered postal receipts and copy of demand

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**Reasoning:** The court observed that the petitioner had provided evidence of the demand notice being

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**Interpretation:** The legal principle is that a demand notice must be properly served to the

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**Application:** The court found that the demand notice was duly served as the petitioner

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** PURSHOTTAM LAL…
- **Respondents:** M/s DENEB…

## Timeline

- **2018-03-01 — Supply of…**: Operational Creditor started supplying…
- **2018-04-14 — Date of D…**: Date on which the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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