# Inthe matter of Bhowmik Dyeing and Bleaching Private Limited C.P. (IB) No. 1717-KB-2018

> NCLT judgment dated 2019-08-02. Citation: TCN-2019-NCLT-02131. The case involves an application filed by Texchem (India), an operational creditor, against…

- **Court:** NCLT
- **Order date:** 2 Aug 2019
- **Citation:** TCN-2019-NCLT-02131
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/inthe-matter-of-bhowmik-dyeing-and-bleaching-private-limited-cp-ib-no-1717-kb-20-5ae1d0b7

## Summary

### Background

The case involves an application filed by Texchem (India), an operational creditor, against Bhowmik Dyeing and Bleaching Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP). Texchem (India) claimed that Bhowmik Dyeing defaulted on payments for goods supplied. Despite receiving notices and statements of accounts, Bhowmik Dyeing failed to fully discharge its debt. The operational creditor produced purchase orders, invoices, and bank statements as evidence of the debt and default.

## Facts

Texchem (India), a proprietorship firm, is an operational creditor. Bhowmik Dyeing and Bleaching Private Limited is the corporate debtor, incorporated on May 12, 2008, and engaged in the business of dyeing, bleaching, and related chemical products. Texchem (India) supplied goods to Bhowmik Dyeing based on purchase orders. The operational creditor raised invoices, some of which were cleared, but many remained pending. Texchem (India) sent statements of accounts to Bhowmik Dyeing, which were confirmed by the corporate debtor. A notice dated October 1, 2018, was sent under Form 3 and 4 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, and received by Bhowmik Dyeing on October 4, 2018. Bhowmik Dyeing made a partial payment of Rs.

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## 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

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**Reasoning:** The court noted that the operational creditor had followed the procedure prescribed under

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The operational creditor, Texchem (India), filed the application under Section

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Texchem (…
- **Respondents:** BHOWMIK DYEING…

## Timeline

- **2008-05-12 — Incorporation of…**: Bhowmik Dyeing and Bleaching…
- **2017-03-16 — Invoice Perio…**: Start date of the period for which invoices…

## 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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