# 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-00532. 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-00532
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/baldva-textiles-private-limited-cp-no-ib-28-9-jpr-2021-6a235789

## 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, who is an operational creditor, seeking the initiation of Corporate Insolvency Resolution Process (CIRP) against Baldva Textiles Private Limited, the corporate debtor. The applicant and respondent had a business relationship for a long time, where the respondent purchased goods from the applicant on a regular basis. The applicant raised tax invoices for each supply. Over time, the respondent started delaying payments.

## Facts

Mr. Ajay Jain, the sole proprietor of M/s Radium Fibres, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Baldva Textiles Private Limited. The applicant and respondent had a long-standing business relationship where the respondent purchased goods from the applicant on a regular basis, with the applicant issuing tax invoices for each supply. The respondent started delaying payments over time. The last payment received by the applicant was on 17.09.2020, amounting to Rs. 4,70,019/-. The total amount due from the respondent is Rs. 1,10,52,163/-, including interest. The applicant issued a demand notice on 07.04.2021, which the respondent acknowledged on 12.04.2021,

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## Issues and analysis

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

**Ratio:** The demand notice in Form No.3 must be properly delivered to the corporate debtor as per

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

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**Interpretation:** Proper service of the demand notice is a prerequisite for initiating CIRP under

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

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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…**: Date of default is…

## 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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