# In the matter of H.L.Tech Fabrics Ltd. (IB)-1614(ND)2019

> NCLT judgment dated 2020-02-10. Citation: TCN-2020-NCLT-02016. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by…

- **Court:** NCLT
- **Order date:** 10 Feb 2020
- **Citation:** TCN-2020-NCLT-02016
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hltech-fabrics-ltd-ib-1614nd2019-9fbee4e3

## Summary

### Background

The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Sunlarge Industries Private Limited (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against H. L. Tech Fabrics Ltd. (Corporate Debtor) for default in payment of operational debt. The Operational Creditor claimed that the Corporate Debtor had purchased products against invoices for which payments were due.

## Facts

Sunlarge Industries Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against H. L. Tech Fabrics Ltd. (Corporate Debtor) for default in payment of operational debt. The Operational Creditor is engaged in manufacturing Synthetic Monofilament Yarns. The Corporate Debtor purchased products from the Operational Creditor, raising invoices with outstanding amounts. The total principal amount due was Rs. 10,58,648. A demand notice was sent on 07.06.2019. The Operational Creditor submitted a ledger account showing a last payment of Rs. 1,25,000 on 30.06.2016. Email and WhatsApp communications were presented to establish the admission of liability. The Corporate Debtor did not appear during the proceedings,

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established a default in payment of the operational debt by …

**Ratio:** Section 9(5) of the IBC allows for the admission of a petition if a default in payment of

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**Reasoning:** The court considered the invoices, ledger accounts, and communications presented by the

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**Interpretation:** The court interpreted Section 9 of the IBC to mean that if the operational

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**Application:** The court applied the ratio to the facts, noting the invoices and ledger

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## Parties

- **Judges:** Ina Mal…; SHRI. L. N.…
- **Appellants:** M/s. Sunlarge…
- **Respondents:** M/s H.L. Tech…
- **Advocates:** Abhikalp Pratap…

## Timeline

- **2016-01-20 — Invoice…**: Invoice Sun/P/122/2015-16…
- **2016-03-02 — Invoice…**: Invoice Sun/P/183/2015-16…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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