# In the matter of Bansal Multiflex Limited CP (IB) No. 339-9-NCLT-AHM-2019

> NCLT judgment dated 2020-12-18. Citation: TCN-2020-NCLT-00034. M/s. Vardhman Textiles, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 18 Dec 2020
- **Citation:** TCN-2020-NCLT-00034
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bansal-multiflex-limited-cp-ib-no-339-9-nclt-ahm-2019-1bbc93d5

## Summary

### Background

M/s. Vardhman Textiles, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Bansal Multiflex Limited, the corporate debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The application was based on the ground that the corporate debtor defaulted in paying an operational debt of Rs. 28,17,083/- despite the service of a demand notice.

## Facts

M/s. Vardhman Textiles, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s. Bansal Multiflex Limited, the corporate debtor. The operational creditor claimed that between 08.08.2017 and 02.01.2019, they sold and supplied textile goods to the corporate debtor, raising invoices. The corporate debtor issued cheques to pay the outstanding amount, but these cheques were dishonored with the reason 'Payment Stopped by the Corporate Debtor'. The outstanding amount was Rs. 28,17,083/-. The operational creditor served a demand notice on 18.02.2019, which was received by the corporate debtor, but the debtor neither paid the dues nor replied to the notice pointing out any pre-existing dispute. The

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The Adjudicating Authority considered the evidence presented by the Operational Creditor,

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The Adjudicating Authority applied Section 9 to the facts of the case,

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Vardhman Te…
- **Respondents:** Bansal Multiflex…

## Timeline

- **2017-08-08 — Start of Transaction…**: The Operational Creditor sold and supplied…
- **2019-01-02 — End of Transaction…**: The Operational Creditor sold and supplied…

## 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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