# In the matter of Rajeev K Aggarwal Vs Panipat Texo Fabs Pvt Ltd CA (AT) 715-2018

> NCLAT judgment dated 2018-11-27. Citation: TCN-2018-NCLAT-00051. The appeal arises from an order dated 26th October 2018, passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 27 Nov 2018
- **Citation:** TCN-2018-NCLAT-00051
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajeev-k-aggarwal-vs-panipat-texo-fabs-pvt-ltd-ca-9f26fd97

## Summary

### Background

The appeal arises from an order dated 26th October 2018, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, in a company petition. The order admitted a petition filed by Panipat Texo Fabs Pvt. Ltd. (Respondent No. 1) as an ‘Operational Creditor’ under Section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code). The appellant, a shareholder of Exclusive Overseas Pvt. Ltd. (Corporate Debtor), challenged the order, arguing that the goods supplied were defective and of inferior quality.

## Facts

Panipat Texo Fabs Pvt. Ltd. (Operational Creditor) supplied polyester staple fiber to Exclusive Overseas Pvt. Ltd. (Corporate Debtor) in the first half of 2018. An amount of Rs. 6,56,788/- was outstanding against the Corporate Debtor as of 31.03.2018. The Corporate Debtor paid Rs. 1,50,000/- and Rs. 1,06,788/-, leaving Rs. 4,00,000/- unpaid. The Operational Creditor issued a demand notice under Section 8(1) of the I&B Code, demanding Rs. 4 lakhs with interest. The Corporate Debtor failed to comply, leading the Operational Creditor to file a petition under Section 9 of the I&B Code. The Adjudicating Authority admitted the petition. The appellant, a shareholder of the Corporate Debtor, argued that the goods supplied were defective, but failed to provide evidence

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting …

**Ratio:** Section 9 of the I&B Code allows an operational creditor to initiate the Corporate

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**Reasoning:** The court reasoned that the appellant failed to demonstrate that the Corporate Debtor

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**Interpretation:** The court interpreted that raising a dispute for the first time in response to

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**Application:** The court applied the ratio to the facts, finding that the dispute raised by

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## Parties

- **Judges:** Bansi Lal…
- **Appellants:** RAJEEV K AG…
- **Respondents:** Exclusive…; Panipat Texo Fabs…

## Timeline

- **2018-10-26 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) passed an order admitting the…
- **2018-11-27 — Appeal Dis…**: The appellate tribunal dismissed the appeal filed by the shareholder of Exclusive…

## 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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