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

> NCLT judgment dated 2020-02-10. Citation: TCN-2020-NCLT-02020. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read…

- **Court:** NCLT
- **Order date:** 10 Feb 2020
- **Citation:** TCN-2020-NCLT-02020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hltech-fabrics-ltd-ib-1614nd2019-fcc6c632

## Summary

### Background

The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Sunlarge Industries Private Limited (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against H. L. Tech Fabrics Ltd. (Corporate Debtor). The Operational Creditor claimed default in payment for products purchased by the Corporate Debtor.

## Facts

Sunlarge Industries Private Limited, the Operational Creditor, filed a petition under Section 9 of the IBC to initiate CIRP against H.L. Tech Fabrics Ltd., the Corporate Debtor. Sunlarge Industries claimed that H.L. Tech Fabrics defaulted on payments for purchased synthetic monofilament yarns. The total outstanding principal amount was Rs. 10,58,648. Sunlarge Industries sent a demand notice dated 07.06.2019 under Section 8 of the IBC, which the Corporate Debtor did not reply to. The Operational Creditor submitted invoices, a ledger account, and email/WhatsApp communications to demonstrate the debt and default. The Corporate Debtor did not appear during the proceedings, leading to an ex-parte order. The authorized share capital of the respondent company is

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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 the operational debt is

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

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**Interpretation:** The court interpreted Section 9(5) of the IBC to mean that if the operational

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**Application:** The court applied the ratio to the facts, noting that the outstanding debt

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## Parties

- **Judges:** Ina Mal…; Shri. L. N.…
- **Appellants:** M/s. Sunlarge…
- **Respondents:** M/s H.L. Tech…

## Timeline

- **2016-01-20 — Invoice…**: Invoice No. Sun/P/122/2015-16…
- **2016-03-02 — Invoice…**: Invoice No. Sun/P/183/2015-1…

## 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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