# In the matter of Exclusive Overseas Pvt. Ltd. (IB)-1106 (ND)-2018

> NCLT judgment dated 2018-10-26. Citation: TCN-2018-NCLT-00483. M/s Panipat Texo Fabs Private Limited, an operational creditor, initiated proceedings under…

- **Court:** NCLT
- **Order date:** 26 Oct 2018
- **Citation:** TCN-2018-NCLT-00483
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/exclusive-overseas-pvt-ltd-ib-1106-nd-2018-eb6d9ca0

## Summary

### Background

M/s Panipat Texo Fabs Private Limited, an operational creditor, initiated proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s Exclusive Overseas Pvt. Ltd., the corporate debtor, due to the latter's inability to pay outstanding dues. The operational creditor claimed to have supplied polyester staple fiber to the corporate debtor since January 2018, with outstanding dues of Rs. 6,56,788 as of March 31, 2018. Despite repeated requests, the corporate debtor made partial payments, leaving a balance of Rs. 4 Lakhs unpaid. A demand notice was issued on July 12, 2018, seeking the outstanding amount along with interest.

## Facts

M/s Panipat Texo Fabs Private Limited (Operational Creditor) claimed to be an operational creditor of M/s Exclusive Overseas Pvt. Ltd. (Corporate Debtor). The Operational Creditor supplied Polyester Staple Fibre to the Corporate Debtor since January 2018. As of 2018-03-31, Rs. 6,56,788 was due. The Corporate Debtor made partial payments of Rs. 1,50,000 and Rs. 1,06,788, leaving Rs. 4,00,000 unpaid. A demand notice was issued on 2018-07-12. The Corporate Debtor claimed the goods were defective or loosely repacked, but failed to provide corroborating evidence. The Operational Creditor filed a petition for initiation of CIRP.

## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor for initiation of the Corporate Insolvency …

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

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**Reasoning:** The court found that the operational creditor had provided sufficient evidence to

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover outstanding

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**Application:** The court applied Section 9 to the facts of the case and found that the

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** M/s Panipat Texo…
- **Respondents:** M/s Exclusive…
- **Advocates:** Vishal Ma…; Akshay…

## Timeline

- **2018-01-01 — Supply of Polyester…**: The Corporate Debtor approached the Operational creditor in January 2018 and since then…
- **2018-03-31 — Outstandin…**: As per the Statement of the running account maintained by the Operational Creditor, a sum…

## 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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