# In the matter of Anandtex International Private Limited CP (IB) No. 152-Chd-Hry-2018

> NCLT judgment dated 2019-02-20. Citation: TCN-2019-NCLT-04764. M/s Avon Cottex Private Limited, the Operational Creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 20 Feb 2019
- **Citation:** TCN-2019-NCLT-04764
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/anandtex-international-private-limited-cp-ib-no-152-chd-hry-2018-8dd1372b

## Summary

### Background

M/s Avon Cottex Private Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against M/s Anandtex International Private Limited, the Corporate Debtor. The Operational Creditor claimed an outstanding amount of ₹27,80,211/- from the Corporate Debtor for fabric supplied for knitting, dyeing, and processing. The Corporate Debtor raised disputes regarding delays in shipment, quality issues, and shortages of material. The Adjudicating Authority examined the disputes and the evidence presented by both parties to determine whether a genuine dispute existed prior to the issuance of the demand notice.

## Facts

M/s Avon Cottex Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Anandtex International Private Limited (Corporate Debtor). The Operational Creditor claimed ₹27,80,211/- as outstanding for fabric supplied to the Corporate Debtor for knitting, dyeing, and processing, based on verbal orders with a 15-day credit period. The petition was supported by invoices, transport documents, and ledger accounts. A demand notice was sent on 27.02.2018, but was not delivered by post, though it was sent via email. The Corporate Debtor claimed disputes regarding delays in shipment and quality issues from August to September 2016, which the Operational

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## Issues and analysis

### Issue 1: Whether a genuine dispute existed between the Operational Creditor and the Corporate Debtor prior …

**Ratio:** The adjudicating authority must reject the application under Section 9(5)(2)(d) if notice

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**Reasoning:** The court considered the Corporate Debtor's claims of disputes regarding delays in

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**Interpretation:** The existence of a genuine dispute prior to the issuance of the demand notice

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**Application:** In this case, the court found that the Corporate Debtor had failed to prove the

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** M/s Avon Cottex…
- **Respondents:** M/s Anandtex…

## Timeline

- **2018-02-27 — Demand Noti…**: Operational Creditor sent a demand notice…
- **2018-03-16 — Dispute Raised by…**: Corporate Debtor raised a dispute by sending…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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