# In the matter of Hemco Garments Pvt.  Ltd. Company Petition (IB)No. 492-ALD-2019

> NCLT judgment dated 2021-03-01. Citation: TCN-2021-NCLT-02893. The case pertains to a Company Petition (IB) No.492/ALD/2019 filed under Section 9 of the…

- **Court:** NCLT
- **Order date:** 1 Mar 2021
- **Citation:** TCN-2021-NCLT-02893
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hemco-garments-pvt-ltd-company-petition-ibno-492-ald-2019-1d24c314

## Summary

### Background

The case pertains to a Company Petition (IB) No.492/ALD/2019 filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Sai Com Codes Flexoprint Pvt. Ltd., the operational creditor/applicant, initiated Corporate Insolvency Resolution Process (CIRP) against Hemco Garments Pvt. Ltd & Anr., the corporate debtor/respondent, due to unpaid invoices for the supply of labels. The corporate debtor failed to contest the case despite multiple opportunities, leading to an ex parte hearing.

## Facts

Sai Com Codes Flexoprint Pvt. Ltd. (Operational Creditor) supplied labels to Hemco Garments Pvt. Ltd & Anr. (Corporate Debtor) based on invoices. The invoices stipulated payment within 30 days, with an 18% interest charge on outstanding amounts. The Operational Creditor claimed that the Corporate Debtor failed to pay a total of Rs. 18,23,239/- against the invoices. Despite repeated reminders, the Corporate Debtor did not respond. The Operational Creditor issued a demand notice under Section 8 of the IBC, 2016, to which the Corporate Debtor replied, claiming a pre-existing dispute regarding the quality of the supplied materials. However, the Corporate Debtor failed to provide any evidence to support this claim and did not contest the CIRP application despite being

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** Section 9(5) of the IB Code outlines the conditions for admitting an application for

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**Reasoning:** The court noted that the corporate debtor failed to appear and contest the case despite

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**Interpretation:** Section 9(5) provides a checklist for the Adjudicating Authority to ensure that

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**Application:** The court determined that the application was complete as the operational

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** Sai Com Codes…
- **Respondents:** Hemco Garments…; Hemco Garments…

## Timeline

- **2019-12-03 — Filing of P…**: The present petition is filed…
- **2021-01-07 — Order for Exparte…**: The case was fixed for exparte hearing on 22.02.2021, as the Corporate Debtor chose not…

## 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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