# In the matter of Baldva Textiles Private Limited CP No. (IB)-28-9-JPR-2021

> NCLT judgment dated 2021-11-11. Citation: TCN-2021-NCLT-00529. This is an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Mr.…

- **Court:** NCLT
- **Order date:** 11 Nov 2021
- **Citation:** TCN-2021-NCLT-00529
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/baldva-textiles-private-limited-cp-no-ib-28-9-jpr-2021-1f50d794

## Summary

### Background

This is an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Mr. Ajay Jain, the sole proprietor of M/s Radium Fibres, claiming to be an Operational Creditor, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Baldva Textiles Private Limited. The Applicant and Respondent had a business relationship where the Respondent purchased goods from the Applicant on a regular basis, and the Applicant raised invoices for each supply. The Respondent allegedly started delaying payments, leading to default.

## Facts

Mr. Ajay Jain, operating as M/s Radium Fibres, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Baldva Textiles Private Limited, citing an operational debt. The two entities had a business relationship where Baldva Textiles purchased goods from Radium Fibres on a regular basis. Radium Fibres issued tax invoices for each supply. Over time, Baldva Textiles allegedly delayed payments, leading to a default. The last payment received by Radium Fibres was on 17.09.2020, amounting to Rs. 4,70,019/-. Subsequently, no further payments were received against invoices totaling Rs. 78,43,224/-. As per the invoice terms, interest was chargeable on delayed payments. Radium Fibres

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## Issues and analysis

### Issue 1: Whether the demand notice in Form No.3 …

**Ratio:** The demand notice must be properly delivered to the Corporate Debtor as per the

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**Reasoning:** The Adjudicating Authority found that the demand notice dated 07.04.2021 was sent through

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**Interpretation:** Section 8 of the IBC requires the Operational Creditor to deliver a demand

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**Application:** In this case, the demand notice was sent via registered post, and the tracking

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## Parties

- **Judges:** Deep Chandr…; RAGHU N…; +1 more
- **Appellants:** AJAY…
- **Respondents:** Baldva Textiles…

## Timeline

- **1996-10-29 — Company Incor…**: Baldva Textiles Private Limited…
- **2019-08-08 — Date of D…**: The date on which the…

## 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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