# In the matter of Shivalik Cotsyn Private Limited CP (IB)No.355-ALD-2018

> NCLT judgment dated 2022-04-27. Citation: TCN-2022-NCLT-04892. The case originates from an application filed by Bhavesh Texo Fab Private Limited, the…

- **Court:** NCLT
- **Order date:** 27 Apr 2022
- **Citation:** TCN-2022-NCLT-04892
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-allahabad/shivalik-cotsyn-private-limited-cp-ibno355-ald-2018-9853c74c

## Summary

### Background

The case originates from an application filed by Bhavesh Texo Fab Private Limited, the Operational Creditor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against M/s Shivalik cotsyn Private Limited, the Corporate Debtor.

## Facts

Bhavesh Texo Fab Private Limited filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate CIRP against M/s Shivalik cotsyn Private Limited.

The Operational Creditor claimed a default amount of Rs. 65,36,488/- as of 09.09.2016.

The Corporate Debtor argued that the amount had been paid to related entities of the Operational Creditor based on instructions from Mr. Sheetal Garg, Director of the Operational Creditor.

The Corporate Debtor referred to an email dated 14.07.2016, where ledgers of the three entities were forwarded by Mr. Sheetal Garg, indicating the amount was settled.

The Operational Creditor contested this claim, stating it is a distinct legal entity and there was no agreement for mutual set-off.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of Rs. 65,36,488/- to the Operational …

**Ratio:** The Corporate Debtor failed to provide sufficient proof of payment or transfer of amounts

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**Reasoning:** The NCLT observed that no proof of payment or transfer of amounts so claimed has been

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**Interpretation:** The absence of concrete evidence of payment weakens the Corporate Debtor's

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**Application:** The NCLT relied on the Operational Creditor's balance sheet showing an

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Appellants:** BHAVESH TEXO FAB…
- **Respondents:** M/s Shivalik…
- **Other parties:** Dinesh…
- **Advocates:** Srijan Me…; Vishal Ma…

## Timeline

- **2016-09-09 — Date of D…**: The date of default is…
- **2017-02-21 — Compromise Ag…**: Corporate Debtor entered into compromise agreement dated 21.02.2017 for settling down…

## 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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