# In the matter of LA Residentia Developers Private Limited Company Petition (IB) No. 188-ND-2020

> NCLT judgment dated 2022-05-25. Citation: TCN-2022-NCLT-02601. The case involves a petition filed by Singhal Pipes Private Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 25 May 2022
- **Citation:** TCN-2022-NCLT-02601
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/la-residentia-developers-private-limited-company-petition-ib-no-188-nd-2020-03c2c7f6

## Summary

### Background

The case involves a petition filed by Singhal Pipes Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against LA Residentia Developers Private Limited (Corporate Debtor) for default in payment of operational debt. The operational creditor supplied plumbing materials to the corporate debtor, for which payments were outstanding. The corporate debtor is a real estate developer. The application was filed on 03-01-2020.

## Facts

Singhal Pipes Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against LA Residentia Developers Private Limited (Corporate Debtor). The Operational Creditor supplied plumbing materials to the Corporate Debtor from 15.02.2017 to 20.05.2017, raising invoices for which payment was outstanding. The total debt claimed was Rs. 28,07,764/-, including principal (Rs. 18,25,329/-) and interest (@24% per annum of Rs. 9,82,435/-). A demand notice dated 01.07.2019 was issued to the Corporate Debtor. The Corporate Debtor made some part payments but failed to liquidate the entire debt. The Corporate Debtor argued that it was part of the Amrapali Group and

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## Issues and analysis

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

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The Adjudicating Authority considered the averments made by both parties, including the

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** In this case, the Adjudicating Authority found that the application was

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** Singhal Pipes…
- **Respondents:** LA Residentia…
- **Advocates:** Harsh T…; Subhash Cho…; +1 more

## Timeline

- **2016-12-01 — Respondent approached…**: The Respondent approached the Applicant to purchase pipes, sockets, cement and allied…
- **2017-02-15 — Supply of Plumbing…**: From 15.02.2017 till 20.05.2017, the operational creditor supplied plumbing materials on…

## 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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