# In the matter of Swati Cast & Forge Pvt. Ltd. CP (IB) No.498-Chd-Pb-2019

> NCLT judgment dated 2022-06-03. Citation: TCN-2022-NCLT-02424. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-02424
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/swati-cast-forge-pvt-ltd-cp-ib-no498-chd-pb-2019-92ccdf5b

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s Kabir Impex, an operational creditor, against M/s Swati Cast & Forge Pvt. Ltd., the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed that the corporate debtor defaulted on payments for Labour Job Forging services provided since 2012. The corporate debtor acknowledged the debt in writing on 07.03.2017. A demand notice was issued on 29.08.2019. The corporate debtor admitted its liability and inability to pay the debt in its reply.

## Facts

M/s Kabir Impex, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Swati Cast & Forge Pvt. Ltd., the corporate debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The operational creditor provided Labour Job Forging services to the corporate debtor since 2012, raising invoices for the same. The corporate debtor acknowledged the debt through written communication on 07.03.2017. A demand notice in Form 3 was issued on 29.08.2019 and duly received by the corporate debtor. The corporate debtor admitted its liability and inability to pay the debt in its reply to the petition. The amount claimed to be in default was Rs.2,37,8812/-, including principal and interest. The petition

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## Issues and analysis

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

**Ratio:** The petitioner must prove that the demand notice was served on the corporate debtor as

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**Reasoning:** The court relied on the tracking report submitted by the petitioner, which indicated that

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**Interpretation:** The requirement of serving a demand notice is crucial for initiating CIRP. The

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**Application:** The court found that the demand notice was properly served based on the

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** M/s Kabir…
- **Respondents:** M/s Swati Cast &…

## Timeline

- **2011-03-22 — Corporate Debtor…**: M/s Swati Cast & Forge Pvt. Ltd.…
- **2012-01-01 — Services Pr…**: M/s Swati Cast & Forge Pvt. Ltd. receiving Labour Job Forging from Operational Creditor…

## 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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