# In the matter of Kumar Distributors Private Limited Company Petition No. IB-990-ND-2018

> NCLT judgment dated 2022-01-12. Citation: TCN-2022-NCLT-04458. The case involves an application filed by M/s Micromax Informatics Limited, the operational…

- **Court:** NCLT
- **Order date:** 12 Jan 2022
- **Citation:** TCN-2022-NCLT-04458
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kumar-distributors-private-limited-company-petition-no-ib-990-nd-2018-96d11268

## Summary

### Background

The case involves an application filed by M/s Micromax Informatics Limited, the operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Kumar Distributors Private Limited, the corporate debtor. The application is based on an alleged default by the corporate debtor, who owes an outstanding balance of Rs. 77,99,040.17 towards the supply of Micromax brand products. The operational creditor and corporate debtor entered into a Micromax Smartphone Distributor Agreement dated 2013-12-13. The corporate debtor used to place orders with the operational creditor for the supply of products.

## Facts

Micromax Informatics Limited (operational creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Kumar Distributors Private Limited (corporate debtor) for an alleged default of Rs. 77,99,040.17. The debt arose from the supply of Micromax brand products under a Micromax Smartphone Distributor Agreement dated 2013-12-13. The corporate debtor issued a cheque dated 2017-07-14 for the outstanding amount, which was dishonored. The operational creditor issued a statutory notice dated 2017-11-20 under the Negotiable Instruments Act, 1881. The corporate debtor claims the cheque was a blank cheque given in 2013 and that the agreement was orally terminated. The operational creditor denies these claims and argues that the agreement

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## Issues and analysis

### Issue 1: Whether the operational creditor has …

**Ratio:** The operational creditor must demonstrate that a debt is due and payable by the corporate

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**Reasoning:** The NCLT found that the operational creditor presented sufficient evidence, including

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**Interpretation:** The court interprets the evidence presented by the operational creditor to

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**Application:** The court applied the ratio to the facts and found that the operational

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## Parties

- **Judges:** DEEPTI M…; SUMITA PURK…; +1 more
- **Appellants:** M/s Micromax…
- **Respondents:** Kumar Distributors…

## Timeline

- **2013-12-13 — Micromax Smartphone…**: Operational creditor and corporate debtor entered into a Micromax Smartphone Distributor…
- **2017-07-14 — Cheque I…**: Corporate debtor issued a…

## 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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