# Prem Associates vs. Drishan Industries Private Limited

> NCLT judgment dated 2026-07-29. Citation: TCN-2026-NCLT-00757. Prem Associates, an Operational Creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 29 Jul 2026
- **Citation:** TCN-2026-NCLT-00757
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/prem-associates-vs-drishan-industries-private-limited-emlkf

## Summary

### Background

Prem Associates, an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Drishan Industries Private Limited, the Corporate Debtor, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application was based on an alleged default of Rs.1,37,21,643/- for raw materials supplied between October 3, 2022, and October 6, 2022. The Corporate Debtor disputed the debt, claiming the transactions were part of a third-party arrangement involving Exclusive Steel and Casting Pvt. Ltd. (ESCPL) and Tina Marketing Pvt. Ltd., and that the demand notice was merely procedural.

## Facts

Prem Associates (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016.

The application seeks initiation of Corporate Insolvency Resolution Process (CIRP) against Drishan Industries Private Limited (Corporate Debtor).

The alleged default amount is Rs.1,37,21,643/-.

The date of default is stated to be 07.10.2022.

The Operational Creditor supplied raw materials to the Corporate Debtor between 03.10.2022 and 06.10.2022.

The Corporate Debtor contended that the Demand Notice dated 01.04.2025 is not maintainable due to the Applicant's alleged failure to establish its license for S.S. Flats trade.

The Corporate Debtor claimed a pre-existing business relationship with Tina Marketing Pvt. Ltd., a related entity of the Applicant.

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## Issues and analysis

### Issue 1: Whether there is an operational debt …

**Ratio:** The Corporate Debtor admitted the supply and receipt of goods under the invoices, and did

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**Reasoning:** The applicant provided 6 invoices, e-way bills, and NeSL records. The Corporate Debtor's

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**Interpretation:** In Section 9 IBC proceedings, the acceptance of goods and corresponding

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**Application:** The NCLT found that the operational debt of Rs.1,37,21,643/- and default were

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Prem Asso…
- **Respondents:** Drishan Industries…
- **Other parties:** Ratanlal Maneklal…; Varun Anil…
- **Advocates:** Dheeraj…; Ajit S.…; +1 more

## Timeline

- **2022-10-03 — Supply of Good…**: Operational Creditor supplied raw…
- **2022-10-06 — Supply of Goo…**: Operational Creditor supplied raw…

## 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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