# In the matter of GKK Exports Private Limited CP-1214-IB-2018

> NCLT judgment dated 2019-03-01. Citation: TCN-2019-NCLT-04616. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 1 Mar 2019
- **Citation:** TCN-2019-NCLT-04616
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gkk-exports-private-limited-cp-1214-ib-2018-1038ed9f

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by CDS Soles Private Limited (Operational Creditor) against GKK Exports Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted in making payment of outstanding dues for the supply of thermoplastic rubber soles. The Operational Creditor had previously filed a civil suit against the Corporate Debtor and its directors in the High Court of Madras, which resulted in a decree in favor of the Operational Creditor. A demand notice was issued to the Corporate Debtor, but no reply was received.

## Facts

CDS Soles Private Limited (Operational Creditor) is engaged in the manufacture and sale of thermoplastic rubber soles. GKK Exports Private Limited (Corporate Debtor) placed orders for the supply of shoe soles. The Operational Creditor supplied the materials as ordered by the Corporate Debtor. As of 28.06.2018, the Corporate Debtor owed Rs.1,04,76,349/- to the Operational Creditor. The Corporate Debtor paid Rs.3,20,581/- on 05.05.2009 and an amount of Rs.96,741.29p was set off against credit notes, leaving a balance outstanding of Rs.33,11,283.71p. The Operational Creditor filed Civil Suit No.361/2014 before the High Court of Madras, which resulted in a decree in favor of the Operational Creditor for Rs.89,81,317.39p plus interest. A demand notice dated 28.06.2018 was

…

## 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

…

**Reasoning:** The court reasoned that the Operational Creditor had provided sufficient evidence,

…

**Interpretation:** Section 9 of the IBC is interpreted to allow for the initiation of CIRP when an

…

**Application:** The ratio and reasoning were applied to the facts of the case, where the

…

## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Appellants:** M/s. CDS Soles…
- **Respondents:** M/s. GKK Exports…

## Timeline

- **2014-01-01 — Civil Suit…**: The Operational Creditor filed Civil Suit No.361/2014 before the High Court of Madras…
- **2017-02-15 — High Court…**: The High Court of Madras passed a decree…

## 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)

---

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/gkk-exports-private-limited-cp-1214-ib-2018-1038ed9f