# In the matter of Fashion Flare International Private Limited IB-280-ND-2021

> NCLT judgment dated 2021-12-10. Citation: TCN-2021-NCLT-00204. The case involves an application filed by Naina Rajkumar Bansal, the operational creditor and…

- **Court:** NCLT
- **Order date:** 10 Dec 2021
- **Citation:** TCN-2021-NCLT-00204
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fashion-flare-international-private-limited-ib-280-nd-2021-025b8d84

## Summary

### Background

The case involves an application filed by Naina Rajkumar Bansal, the operational creditor and sole proprietor of M/s Viraj Weaves, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, M/s Fashion Flare International Private Limited. The operational creditor claims that the corporate debtor defaulted on payments for manufactured cloth supplied to them. The corporate debtor failed to respond to the demand notice within the stipulated time, and the operational creditor filed the application for initiating CIRP.

## Facts

Naina Rajkumar Bansal, the sole proprietor of M/s Viraj Weaves, supplied manufactured cloth to M/s Fashion Flare International Private Limited, the corporate debtor. The corporate debtor made some initial payments but then stopped, even after receiving further consignments. The corporate debtor used the supplied material for business purposes and earned profits. The corporate debtor blocked the operational creditor's representative's mobile phone and stopped replying to emails. Several invoices remained unpaid, including Invoice No. G/30 dated 2018-10-26, Invoice No. G/31 dated 2018-10-26, Invoice No. G/39 dated 2018-11-03, Invoice No. G/40 dated 2018-11-03, Invoice No. G/69 dated 2018-12-27, and Invoice No. G/83 dated 2018-01-24. A demand notice dated 2020-01-15 was

…

## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor under Section 9 of the IBC, 2016, is …

**Ratio:** Section 9 of the IBC, 2016, allows an operational creditor to initiate CIRP against a

…

**Reasoning:** The tribunal perused the petition and arguments advanced by the operational creditor and

…

**Interpretation:** Section 9 of the IBC, 2016, provides a mechanism for operational creditors to

…

**Application:** The tribunal applied Section 9 of the IBC, 2016, to the facts of the case,

…

## Parties

- **Judges:** BACHU VENKAT…; Narender Kumar…
- **Appellants:** Naina Rajkumar…
- **Respondents:** M/s Fashion Flare…
- **Advocates:** Abhigya K…

## Timeline

- **2018-01-24 — Invoice…**: Invoice No. G/83 dated…
- **2018-10-26 — Invoice…**: Invoice No. G/30 and…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/fashion-flare-international-private-limited-ib-280-nd-2021-025b8d84