# In the matter of RAJESHWARI COTSPIN LIMITED

> NCLT judgment dated 2025-09-17. Citation: TCN-2025-NCLT-01420. The Operational Creditor, M/s. Shubh Cotton, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 17 Sept 2025
- **Citation:** TCN-2025-NCLT-01420
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/rajeshwari-cotspin-limited-8ac9a10a

## Summary

### Background

The Operational Creditor, M/s. Shubh Cotton, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor, Rajeshwari Cotspin Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP) for a default amount of Rs.4,27,89,552.64/-.

## Facts

M/s. Shubh Cotton, the Operational Creditor, supplied cotton bales to Rajeshwari Cotspin Limited, the Corporate Debtor, between 07.05.2019 and 23.12.2019.

The Corporate Debtor failed to clear its dues despite receiving the goods, leading to a default date of 07.01.2020.

The Corporate Debtor issued several cheques towards payment of the debt, which were subsequently dishonored.

The Operational Creditor initiated proceedings under Section 138 of the Negotiable Instruments Act, 1981, against the Corporate Debtor.

The Operational Creditor issued a demand notice dated 29.04.2023, which the Corporate Debtor replied to on 10.05.2023, denying its liability.

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is maintainable under Section 9 of the …

**Ratio:** The application is maintainable as the Operational Creditor has demonstrated a debt and

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**Reasoning:** The NCLT found that the Operational Creditor had furnished necessary records of invoices

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**Interpretation:** Section 9 of the IBC allows an Operational Creditor to initiate CIRP against a

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**Application:** The NCLT applied Section 9 of the IBC to the facts of the case and determined

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Shubh C…
- **Respondents:** Rajeshwari…
- **Other parties:** Malav Jitendra…
- **Advocates:** Mohit G…; Harmish…

## Timeline

- **07.05.2019 — Supply of…**: The Operational Creditor supplied cotton bales to the Corporate Debtor between 07.05.2019…
- **23.12.2019 — Last Date of…**: Last date of invoice is…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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