# In the matter of Innovative Textiles Limited Company Petition no. (IB)-35(ND)-2019

> NCLT judgment dated 2019-04-15. Citation: TCN-2019-NCLT-03919. The case involves a petition filed by BDH Corporation (India), an operational creditor, against…

- **Court:** NCLT
- **Order date:** 15 Apr 2019
- **Citation:** TCN-2019-NCLT-03919
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/innovative-textiles-limited-company-petition-no-ib-35nd-2019-082d9f23

## Summary

### Background

The case involves a petition filed by BDH Corporation (India), an operational creditor, against Innovative Textiles Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. BDH Corporation claimed that Innovative Textiles defaulted on payments for supplied goods. The operational creditor sought initiation of the Corporate Insolvency Resolution Process (CIRP).

## Facts

BDH Corporation (India), an operational creditor engaged in supplying dyes and chemicals, filed a petition against Innovative Textiles Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. Innovative Textiles placed purchase orders for 5000 kgs of Dytec SFD with BDH Corporation. BDH Corporation supplied 4000 kgs of Dytec SFD, which were received without dispute. Invoices corresponding to the purchase orders remained unpaid, totaling Rs. 14,80,900/-. Innovative Textiles issued a cheque for Rs. 14,75,000/-, which was dishonored due to 'Payment Stopped by the Drawer'. A statutory demand notice was issued on June 5, 2018, and received by Innovative Textiles on June 6, 2018. Innovative Textiles raised objections regarding the quality of

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** Section 9(5)(i)(a) to (d) of the IBC, 2016 outlines the requirements for an application

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**Reasoning:** The court found the application to be complete based on the provided documents and

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

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**Application:** The court applied the provisions of Section 9(5)(i)(a) to (d) to the facts of

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## Parties

- **Judges:** R. VARADH…; Deepa Kr…; +1 more
- **Appellants:** BDH Corporation…
- **Respondents:** Innovative…
- **Advocates:** Vijay M C…

## Timeline

- **1993-09-17 — Incorporation of…**: Innovative Textiles…
- **2018-02-16 — Purchase Ord…**: Respondent placed purchase orders…

## 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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