# In the matter of Jewel Garments Private Limited CP (IB) No. 285-Chd-Hry-2020

> NCLT judgment dated 2022-09-15. Citation: TCN-2022-NCLT-01058. Sunfocus Solutions Private Limited, the Operational Creditor, filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 15 Sept 2022
- **Citation:** TCN-2022-NCLT-01058
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jewel-garments-private-limited-cp-ib-no-285-chd-hry-2020-57f5d303

## Summary

### Background

Sunfocus Solutions Private Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Jewel Garments Private Limited, the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default of Rs. 21,13,000/- for the development of a website for the Corporate Debtor. The Corporate Debtor acknowledged the debt but cited adverse financial conditions as the reason for non-payment.

## Facts

Sunfocus Solutions Private Limited (Operational Creditor) entered into an agreement with Jewel Garments Private Limited (Corporate Debtor) on 02.07.2019 for the development of a website for trading garments and textiles. The Operational Creditor raised two invoices, DOM-29 dated 06.08.2019 and DOM-35 dated 29.08.2019, totaling Rs. 21,13,000. The Corporate Debtor defaulted on payment, with the default occurring on 13.09.2019. A demand notice in Form 3 dated 03.02.2020 was sent to the Corporate Debtor. The Corporate Debtor acknowledged the debt in an email dated 24.02.2020, citing insufficient funds. The application under Section 9 of the IBC was filed on 13.03.2020 and refiled on 02.11.2020. The Corporate Debtor admitted its inability to repay the debt due to adverse

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## Issues and analysis

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

**Ratio:** A demand notice is considered duly served if it is delivered to the corporate debtor and

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**Reasoning:** The Adjudicating Authority noted that the demand notice was sent via email on 24.02.2020

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**Interpretation:** The service of a demand notice can be considered valid if it is delivered

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**Application:** The demand notice was sent via email and speed post, and the Corporate Debtor

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Sunfocus Solutions…
- **Respondents:** Jewel Garments…
- **Advocates:** Sumer Sing…; Sandeep Singh…

## Timeline

- **2019-07-02 — Agreement…**: Operational Creditor and Corporate Debtor entered into an agreement for website…
- **2019-08-06 — Invoice D…**: Operational Creditor…

## 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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