# In the matter of Shop CJ Network Private Limited CP (IB) No.1224-NCLT-MB-IV-2019

> NCLT judgment dated 2022-01-19. Citation: TCN-2022-NCLT-04404. The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 19 Jan 2022
- **Citation:** TCN-2022-NCLT-04404
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shop-cj-network-private-limited-cp-ib-no1224-nclt-mb-iv-2019-d6c6add5

## Summary

### Background

The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Adonis Mobitrade Private Limited, the Operational Creditor, against Shop CJ Network Private Limited, the Corporate Debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is a company incorporated on 01.09.2008 under the Companies Act, 1956. The Operational Creditor claims that the Corporate Debtor failed to make payment of Rs.91,89,867/-. The Corporate Debtor contends that there are transactions between the Sister Concern and the Parent Company, but there is no concern about the transaction between Sister Concern with the liability of the Corporate Debtor.

## Facts

Adonis Mobitrade Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Shop CJ Network Private Limited (Corporate Debtor). The Corporate Debtor was incorporated on 01.09.2008. The Operational Creditor claimed that the Corporate Debtor failed to pay Rs.91,89,867/-, with the date of default being 20.10.2017. The Corporate Debtor issued purchase orders to the Operational Creditor for mobile phones between 11.08.2017 and 13.09.2017. The Operational Creditor raised invoices between 14.08.2017 and 26.09.2017. The Corporate Debtor started transactions with the Operational Creditor's sister concern from August 2016. The Corporate Debtor found

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a debt …

**Ratio:** Section 4(1) of the IBC stipulates a minimum

…

**Reasoning:** The NCLT observed that the Corporate Debtor is liable to pay the debt amount which is due

…

**Interpretation:** The court interpreted the records to show that the Corporate Debtor had an

…

**Application:** The court applied the facts to the legal principle and found that the Corporate

…

## Parties

- **Judges:** RAJESH S…; KISHORE VEMULAPALL…
- **Appellants:** Adonis Mobitrade…
- **Respondents:** Shop CJ Network…

## Timeline

- **2008-09-01 — Incorporation of…**: Shop CJ Network Private Limited…
- **2017-08-11 — Purchase Order…**: Corporate Debtor issued purchase orders to Operational Creditor for supply of Mobile…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shop-cj-network-private-limited-cp-ib-no1224-nclt-mb-iv-2019-d6c6add5