# In the matter of U P Bone Mills Private Limited

> NCLT judgment dated 2025-05-09. Citation: TCN-2025-NCLT-00970. The application preferred under Section 9 of the IBC, 2016 by Mr. Mujahid, proprietor of Moon…

- **Court:** NCLT
- **Order date:** 9 May 2025
- **Citation:** TCN-2025-NCLT-00970
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/u-p-bone-mills-private-limited-fe6276bd

## Summary

### Background

The application preferred under Section 9 of the IBC, 2016 by Mr. Mujahid, proprietor of Moon Traders, was initially considered for admission. However, the Tribunal had strong reservations about the application being collusive.

## Facts

Mr. Mujahid, proprietor of Moon Traders, filed an application under Section 9 of the IBC, 2016.

The Tribunal had reservations about the application being collusive.

The Applicant and Respondent were asked to file separate affidavits stating that the proceedings were not collusive.

The Respondent admitted the debt and default.

The Tribunal found that the order of admission did not reference any invoice or demand notice.

The Assistant Commissioner, Central GST Division Roorkee, raised concerns about the supply of goods.

Summons were issued to Mr. Mujahid, but he did not respond or join the inquiry.

The Tribunal concluded that the Operational Creditor initiated the Insolvency Resolution Process with fraudulent intention and purpose.

## Issues and analysis

### Issue 1: Whether the Operational Creditor initiated the Insolvency Resolution Process with fraudulent …

**Ratio:** The Tribunal found that the Operational Creditor initiated the Insolvency Resolution

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**Reasoning:** The Tribunal considered the concerns raised by the Assistant Commissioner, Central GST

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**Interpretation:** The Tribunal interpreted the facts and circumstances of the case to indicate

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**Application:** Based on the interpretation, the Tribunal recalled the order passed in

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## Parties

- **Judges:** Sh. Ashok Kumar…; Reena Sinh…
- **Appellants:** Muja…
- **Respondents:** U P Bone Mills…
- **Other parties:** Shamshad…; I. P. S.…; +1 more
- **Advocates:** Anushree…; Ankit Kum…; +1 more

## Timeline

- **2023-10-26 — Order of Ad…**: Tribunal passed an order of admission, but had strong semblance that the application…
- **2023-09-06 — Order for Aff…**: Tribunal passed an order calling upon the Applicant and Respondent to file separate…

## 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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