# In the matter of Tung Builders Private Limited CP (IB) No. 211-Chd-Pb-2021

> NCLT judgment dated 2022-11-04. Citation: TCN-2022-NCLT-00529. Fortune Metals Limited, the operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 4 Nov 2022
- **Citation:** TCN-2022-NCLT-00529
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tung-builders-private-limited-cp-ib-no-211-chd-pb-2021-036e9a49

## Summary

### Background

Fortune Metals Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Tung Builders Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for the supply of TMT. The Adjudicating Authority considered whether the demand notice was properly served, whether the operational debt was disputed, and whether the application was filed within the limitation period.

## Facts

Fortune Metals Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Tung Builders Private Limited (Corporate Debtor). Fortune Metals Limited supplied TMT to Tung Builders Private Limited on a running account basis. The last payment made by Tung Builders Private Limited was Rs. 12,68,765/-. Thereafter, Tung Builders Private Limited stopped making payments, leading to a default of Rs. 1,01,12,899/-. A demand notice was issued on 23.11.2020, but no reply was received. The date of default was 23.04.2019. The application was filed on 12.08.2021. The corporate debtor did not appear, and the matter proceeded ex-parte.

## Issues and analysis

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

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

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**Reasoning:** The petitioner placed a tracking report stating that the speed post was delivered to the

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**Interpretation:** The demand notice must be properly served to the corporate debtor to provide an

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**Application:** The petitioner provided evidence of delivery of the demand notice, satisfying

…

## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Fortune Metals…
- **Respondents:** Tung Builders…
- **Advocates:** Arun K…

## Timeline

- **2019-04-23 — Date of D…**: The date of default as…
- **2020-11-23 — Demand N…**: A demand notice in Form 3 was issued to…

## 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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