SC: UGC Regulations Override State Law on Forming Search Committees For University VC Appointments  ||  SC: State Cannot Deny Regularisation to Long-Serving Contract Staff Appointed Through Due Process  ||  Supreme Court: Patients Cannot Claim Unproven Medical Treatments as a Matter of Right  ||  SC: Polluting Company’s Turnover May Be Considered While Fixing Environmental Damage Compensation  ||  Delhi HC: Dacoity Convicts U/S 395 IPC Cannot Claim Benefit under the Probation of Offenders Act  ||  Bombay HC: An Adopted Child’s Caste is Considered the Same as That of the Adoptive Parents  ||  Calcutta High Court: 18-Month Delay in Delivering a Judgment Alone is Not Sufficient to Set it Aside  ||  Punjab & Haryana High Court: ED Can Arrest Individuals Even if FIRs are Added to the ECIR Later  ||  SC: Menstrual Health is a Fundamental Right under Article 21; Orders Free Sanitary Pads in Schools  ||  Supreme Court: Industrial Court is the Proper Forum to Decide Issues Relating to Contract Labour    

Clicbrics Technologies Pvt. Ltd. Vs. Ansal Housing Limited - (NATIONAL COMPANY LAW APPELLATE TRIBUNAL) (05 Apr 2023)

If the claim of an Operational Creditor is undisputed and the operational debt remains unpaid, CIRP must commence

MANU/NL/0312/2023

Insolvency

The present appeal filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 ('IBC') by the Appellant arises out of the order passed by the Adjudicating Authority. By the impugned order, the Adjudicating Authority dismissed Company Appeal, the application filed by Operational Creditor (the present Appellant) under Section 9 of the IBC seeking initiation of Corporate Insolvency Resolution Process ('CIRP') against Corporate Debtor- Ansal Housing Limited (the present Respondent). Aggrieved by the impugned order, the present appeal has been preferred by the Operational Creditor.

There is a clear admittance of operational debt which was due and payable on the part of the Corporate Debtor and that the operational debt was beyond the threshold limit of Rs.1 lakh. Further, it is pertinent to add here that, the Corporate Debtor has admitted that not only was the Operational Creditor entitled to receive payment, but the payment claimed was made in terms of the MoU and invoices were annexed with the claim. It is also unequivocally clear that, even on the date of filing of reply to the Section 9 application by the Corporate Debtor, by their own admission, the operational debt which had become due and payable remained unpaid. Therefore, default had been committed qua the operational debt owed to the Operational Creditor.

In the judgment of S.S. Engineers v. Hindustan Petroleum Corporation Ltd., wherein it has been clearly held that, if the claim of an Operational Creditor is undisputed and the operational debt remains unpaid, CIRP must commence for IBC does not countenance dishonesty or deliberate failure to repay the dues of an Operational Creditor.

The operational debt which had admittedly become due and payable having not been disputed prior to issue of demand notice and not been discharged by the Corporate Debtor, this is a fit case for admission of CIRP. The Adjudicating Authority has erroneously rejected the application under Section 9 of IBC. Impugned order is set aside.

Tags : CIRP   ADMISSION   GRANT  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved