# In the matter of Subhash N Dawar vs. Nanjing Maohj Information & Technology Co. Ltd. & Ors. .

> NCLAT judgment dated 2024-05-24. Citation: TCN-2024-NCLAT-00414. This case involves an appeal against the admission of insolvency proceedings against a…

- **Court:** NCLAT
- **Order date:** 24 May 2024
- **Citation:** TCN-2024-NCLAT-00414
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/subhash-n-dawar-vs-nanjing-maohj-information-technology-co-ltd-ors-5e0b677c

## Summary

### Background

This case involves an appeal against the admission of insolvency proceedings against a Corporate Debtor, M/s Alliance Embroidery Machine Private Limited, initiated by an Operational Creditor, Nanjing Maohj Information & Technology Co. Ltd. (NMIT). NMIT claimed an outstanding debt of USD 773,696.90 for the supply of Yuemei laser bridges and computerized embroidery machines based on signed sales contracts. The Corporate Debtor disputed the claim, asserting they purchased the machines from Chirag Impex (HK) Ltd. The Adjudicating Authority admitted the Section 9 proceedings, leading to this appeal by the suspended management of the Corporate Debtor, represented by Subhash N Dawar.

## Facts

Nanjing Maohj Information & Technology Co. Ltd. (NMIT), an Operational Creditor, supplied machinery to M/s Alliance Embroidery Machine Private Limited, the Corporate Debtor, through Chirag Impex Limited. The Corporate Debtor failed to make full payment, leading NMIT to issue a demand notice. When no reply was received, NMIT initiated Section 9 proceedings under the IBC. The Adjudicating Authority admitted the proceedings. The Corporate Debtor, under suspended management, appealed, arguing that goods were delivered to Chirag Impex (HK) Ltd., a separate legal entity, and that the demand notice was issued to them, not the Corporate Debtor. The Corporate Debtor also alleged malpractices regarding customs duty evasion. NMIT contended that the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is liable for the outstanding dues claimed by the Operational …

**Ratio:** The legal principle is that a corporate debtor is liable for debts arising from

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**Reasoning:** The court reasoned that the signed sales contracts, bills of lading, and confirmation

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**Interpretation:** This issue involves interpreting the direct contractual obligations between the

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**Application:** The ratio and reasoning were applied to the facts by emphasizing the direct

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…; +1 more
- **Appellants:** Subhash N…
- **Respondents:** Alliance Embroider…; Nanjing Maohj…

## Timeline

- **2020-03-31 — Demand Notice…**: Operational Creditor issued a demand notice to the Corporate Debtor through its advocates…
- **2024-04-10 — Impugned Ord…**: Date of the Impugned Order passed by the Adjudicating Authority admitting the Section 9…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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