# In the matter of Indicarb Ltd. CP (IB) No. 173-BB-2022

> NCLT judgment dated 2023-01-05. Citation: TCN-2023-NCLT-05188. The case involves an application filed by M/s. Choice Wires Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 5 Jan 2023
- **Citation:** TCN-2023-NCLT-05188
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indicarb-ltd-cp-ib-no-173-bb-2022-3634ac05

## Summary

### Background

The case involves an application filed by M/s. Choice Wires Private Limited, the Operational Creditor/Petitioner, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Indicarb Limited, the Corporate Debtor/Respondent. The application is supported by an affidavit dated 29.03.2022. The Corporate Debtor is a company registered under the Companies Act, 1956, incorporated on 26.03.1975. The Operational Creditor supplied MS Bright and Special Steel Bars to the Corporate Debtor, against which a default of Rs.4,66,48,000/- occurred.

## Facts

M/s. Choice Wires Pvt Ltd, the 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. Indicarb Limited, the Corporate Debtor. The Corporate Debtor was incorporated on 26.03.1975. The Operational Creditor supplied MS Bright and Special Steel Bars to the Corporate Debtor. The Corporate Debtor issued a Purchase Order for 350 MT of Goods on 03.04.2006. The Operational Creditor supplied the goods from 06.04.2006 to 26.06.2006. The Corporate Debtor failed to make the payment, leading to a default amount of Rs.4,66,48,000/-. A notice of payment was issued on 28.07.2006. The Corporate Debtor acknowledged the debt in its balance sheet and other written

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## Issues and analysis

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

**Ratio:** The demand notice is a prerequisite for

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**Reasoning:** The court observed that the demand notice dated 28.03.2022 was served on the Corporate

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**Interpretation:** The service of demand notice is essential to provide the Corporate Debtor an

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**Application:** The demand notice was served, and the Corporate Debtor's response was

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## Parties

- **Judges:** TMT. T.KRISHNAVALL…; SH. MANOJ KUMAR…
- **Appellants:** M/s. Choice Wires…
- **Respondents:** M/s. Indicarb…; M/s. Indica…

## Timeline

- **1975-03-26 — Corporate Debtor…**: M/s. Indicarb Limited…
- **2006-03-24 — Sample of Goods…**: Operational Creditor supplied the sample of goods of 25.087 MT quantity to Corporate…

## 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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