Allowed

In the matter of Digicontrols Northern Private Limited Company Petition No. (IB)-164-9-JPR-2019

NCLT11 Oct 2019

Case brief

AI extract

What is this about?

The NCLT Jaipur admitted an application under Section 9 of the IBC, 2016 filed by an operational creditor against the corporate debtor. The court found the debt and default admitted by the corporate debtor, appointed an Interim Resolution Professional, and invoked the moratorium under Section 14 to initiate the Corporate Insolvency Resolution Process.

What did the court decide?

Application admitted under Section 9; CIRP initiated; Mr. Ranjeet Kumar Verma appointed as Interim Resolution Professional; moratorium under Section 14 invoked.

In the matter of Digicontrols Northern Private Limited… — Insolvency and Bankruptcy | NCLT (2019)

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S..^, fro. esL)&"lt E IN THE NATIoNAL CoMPANY LAw TRTBUNAL JATPUR (CpURT NO. r)

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CORAM: MS. INA MALHOTRA, HON'BLE JUDICIAL MEMBER

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SHRI RAGIIU NAYYAR, HON'BLE TECHNICAI, MEMBER

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Company Petition No. (IB)-164 19 I JPRl20l9

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(Under Section 9 of the Insolvency and Bankruptcy Code, 2016 Read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules,2016

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IN TIIE MATTER OF:

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M/s. Eltech Electro- Controls Pvt. Ltd.

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. . . Operational Creditor/Applicant

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VERSUS

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M/s" Digicontrols Northern Private Limited

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. . . Corporate f)cbtor/Respondent

mar Chowdhery

awat, Adv.

/----) I @ /

Couft Officer National Company Law Tribunal Jaipur

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M/s. M/s. Eltech Electro- Controls Pvt. Lrct. Versus

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<Q<

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M/s. Digicontrols Northem Private Limited

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-@ unuo oF pARTTES

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M/s. Eltech Electro-Controls Private Limited Shop No. 27, Plot No. 5, H Pocket Market Sarita Vihar, New Delhi-1 10076

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. . . Operational Cred itor/Applicant

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VERSI]S

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M/s. Digicontrols Northern Private Limited Shop No. 46, Arcade Market Omaxe Panaroma City, Alwar Road Opposite Sizewark INK Company, Bhiwadi- 30 1 0 1 8, Rajasthan

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. . . Corporate Debtor/Respondent

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Order Prolrounced On:I1.10.2019

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ORDER

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Per: Shri Raghu Nayyar. (Technical Member)

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This Application is filed under Section 9 of the Insolvency and Bankruptcy code, 2016 ('IBC, 2016') read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by XzVs, Eltech Electro-Controls Private Limited ('Applicant') claiming to be an

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: J_ :'QJ-^{Operational Creditor with a prayer for initiation of Corporate Insolvency} i *-..tu tqi S I

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M/s. M/s. Eltech Electro- Controls pvt. Ltd. Versus M/s. Digicontrols Northern private Limited

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Court Officer National Company Law Tribunal Jaipur

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@ Resolution Process ('CIRP') against IWs. I\zlls. Digicontrols Northem Private Limited (' Corporate Debtor').

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The Applicant has filed this Application through the Authorised Representative of IWs. Eltech Electro-Controls Private Limited who is authorised vide Resolution of Board of Directors dated 03.06,2019,

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The Corporate Debtor is a Private Limited Company, incorporated under the provisions of Companies Act, 1956 on29.09.1987, duly registered with Registrar of Companies, Jaipur bearing CIN: lJ72l00RJ 1 987PTC004 I 08, and its Registered Office is located at, Shop No. 46, Arcade Market Omaxe Panaroma City, Alwar Road, opposite Sizewark INK Company, Bhiwadi301018, Rajasthan. The Authorized share capital of the Corporate Debtor is Rs. 41,00,000/- and Issued, Subscribed and Paid up share capital of the is Rs. 40,50,000/-.

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It is the case of the Applicant that the Corporate Debtor has failed to pay an amount of Rs. 1,87,095.50/- in discharge of its liability arising out of supply of electronic items. It is submitted by the Operational Creditor that it had supplied 35 cheque collection Box @ Rr. 5000/- each with total amount of 1,15,0001- and issued a bill dated 06.05.2008 for an amount of Rs. r,15,0001-, The operational creditor had also supplied 22 price tation machines @ of Rs. 21251- per machine with toral amount o1'

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certifie.d copy

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Ffge GOp^{s. 461501- and 1034 packing} for table top @Rs. 1 4.t31- with total amount

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Versus M/s. Digicontrols Northern Private Limited

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Court Officer National Conrpany Law Tribunal Jaipur

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-e of Rs. 14612/- and issued a bill dated 06.05.2008 for an amount of Rs. 61,3621-.

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The Operational Creditor has submitted the Corporate Debtor made part payments on L7.20.2008, 16.03 .2009 and 18.03 .2009, totalling to Rs. 49,266.501- and the balance amount of Rs. 1,87,095.50/- has not been paid by the Corporate Debtor till date. It is submitted that the Operational Creditor had sent many reminder letters to the Corporate Debtor on 03 .03 .20 I 7, 02.0 1 .20 13, 1 4.07 .20 1 5 and 03. 1 0.20 1 7. The Corporate Debtor had replied to the said letters by acknowledging the debt and expressing its financial difficulties.

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The Operational Creditor has issued demand notice under Section 8 of the Insolvency and Bankruptcy Code for an amount of Rs. 1,87,095.50/- on the Corporate Debtor, which was duly received. by Corporate Debtor. The Corporate Debtor has replied to the Demand Notice acknowledging the debt and sought more time to pay the outstanding debt. Therefore, the applicant filed the present application under section 9 of Insolvency and Bankruptcy Code, 2016.

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Free Copy

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Court Officer National CornPanY^{Law Tribunal} .lain',.lr

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M/s. Digicontrols Norlhem private Limited

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PARI'IV

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Sr.No.	Parliculars	ofOperationalDebt
1	Totalamountof	Total Amountdue and
	debt,Detailsof Transactions Accountofwhich debtfelldue,and thedatefrom which suchdebtfelldue	outstandingisRs. 1,87,095.501-
2.	Amountclaimedto	Thetotalamountbeing
	bein defaultand the	claimed isRs,1,87,095.501-
	dateonwhichthe
	defaultoccurred	DateofDefault:01.02.20i8

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The Corporate Debtor has filed its reply stating therein that the Operational Creditor has been supplying goods since 2OO4 and was being paid regularly. However, for the supplies made in May 2008, the Corporate Debtor could not pay due to recession in their industry. The debt has been periodically acknowledged by the Corporate Debtor in the interregnum and has not been barred by the limitation due to efflux of time, as the same has been reebtor within three year time interval. The edged in its reply that an amount of Rs.

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1 ,87,095.50/- is outstanding and payable.

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Certified Copy Oroer

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Free^CoPY

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IWs. IWs. Eltech Electro- Controls pw. Ltd.

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Court Officer National ComPanY^{Law Tribuna!} JaiPur

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€ q. In view of the reply of the Corporate Debtor, the claim stands established and the debt is admitted by the Respondent. There is a clear default in payment of the amount due to the Applicant.

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Hence, this Tribunal is inclined to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor as envisaged under the provisions of IBC, 2016.

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1 l.This Tribunal perused all the relevant papers and found thern to be in order. The Registered Office of the Corporate Debtor is siluated in Bhirvadi and therefore this Tribunal has jurisdiction to enterlain and try this Application. The matter is also within the purview of Law of Lirnitation.

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12.The Applicant has proposed the name of Mr. Ranjeet Kumar Verma to be appointed as Interim Resolution Professional('IRP'). He is a qualified Resolution Professional with no IBBI restraint and has given his consent in Form 2 to acl as IRP. In view of the sarle, this Tribunal appoints Mr. Ranjeet Kumar Verma, having Registration No. IBBI/IPA-0OrUP-*0030 ll2ll7l8/10859, Mobile No.: 9999678a09 and email address

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[email protected], as the IRP of the Corporate Debtor. l'he IRP is a ed to take all such steps as are requ i red under the statute, inter-alia in n$Qo^+i^--1( of Sections 15, 11 17,IB,19,ZO and2l 1O 1n ^n^{^,-l^1} of the IBC, 2016.

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The oonsequences of initiation of CIRP shall be inter alia are follows: - Certified Copy Order a Free Copy

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National^{ComPanvLavrTribunal} Jai0':r

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(i) The Resolution Professional NIr. nljeet Kumar verma, having Registration No. IBBI/IPA-002/IP-N0030 tl2lll -t8110859, is hereby appointed as the IRP to take over the affairs of the Coqporate Debtor and duties as required to be performed by him underthe Provisjons of IBC, 2016, including the issue of publication in widely circulated newspapers, including one in English and one in vernacular in Jaipur and its hinterland, as contemplated under the Provisions of IBC, 2016 and calling for the claims from the creditors of the Corporate Debtor and collating of the same shall be done.

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(ii) Further as a consequence of admission, Moratorium as envisaged under Section 14 of IBC, 2016 is invoked in relation to the Corporate Debtor which will be in vogue during CIRP of the Corporate Debtor. The IRp shall carty out Corporate Insolvency Resolution Process strictly as per the timelines specified and as envisaged under the provisions of IBC, 2016 in relation to the Corporate Debtor.

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(iii) The said IRP shall act strictly in compliance with the provisions of IBC, ay his expenses to be incurred and fees on reditor is directed to deposit a sum of Rs. )^{to the account of IRp within} 3 days from shall duly file the status report appraising

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Free G 1 5 gCI Tribunal about the progress of CIRP unfolded in relation to the

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M/s, M/s. Eltech Electro- Controls pvt. Ltd. Versus

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M/s. Digicontrols Northern private Limited

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Ccurt Officer National^{ComPanY Law Tribunal}

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"'I'l:

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=a9

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Corporate Debtor. In terms of Sections 17 and 19 of IBC, 2016 all persorulel of the Corporate Debtor including its promoters and Board of Directors, whose powers shall stand suspended will extend all cooperation to the IRP during his tenure as such and the management of the affairs of the Corporate Debtor shall vest with the IRP.

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(iv) In terms of Section 9 of IBC, 2016 a copy of this older shall be communicated to the Operational Creditor, Corporate Debtor as well as the Interim Resolution Professional appointed by this Tribunal to carry out the CIRP at the earliest not excecding one week fiorn today. A copy of this order shall also be communicated to IBRI for its records.

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