# In the matter of Intime Textile Limited CP-781-IB-2018

> NCLT judgment dated 2019-09-16. Citation: TCN-2019-NCLT-01450. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Sept 2019
- **Citation:** TCN-2019-NCLT-01450
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/intime-textile-limited-cp-781-ib-2018-084a5281

## Summary

### Background

The case involves an application 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, by Muniraj Colours Private Limited (Operational Creditor) against Intime Textile Limited (Corporate Debtor). The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for unpaid dues related to the supply of printing chemicals. The Corporate Debtor made a partial payment and issued post-dated cheques that were dishonored. The Operational Creditor issued a demand notice under Section 8 of the I&B Code, to which the Corporate Debtor did not respond.

## Facts

Muniraj Colours Private Limited (Operational Creditor) filed an application against Intime Textile Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor supplied printing chemicals to the Corporate Debtor between 2014-09-26 and 2014-12-08, raising invoices for the same. The Corporate Debtor was required to make payments within 60 days of the invoice date, with a stipulation for 24% per annum interest on delayed payments. On 2016-07-16, the Corporate Debtor made a partial payment of Rs. 13,537. The Operational Creditor claimed an amount of Rs. 40,14,320, comprising Rs. 22,72,355 as principal and Rs. 17,41,965 as interest. The Corporate Debtor issued post-dated cheques for the remaining amount, which were

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has met the requirements for the admission of the application …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, outlines the conditions for an

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**Reasoning:** The court reasoned that the Operational Creditor had provided sufficient evidence,

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**Interpretation:** The interpretation of Section 9 requires the operational creditor to prove the

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**Application:** In this case, the Operational Creditor provided invoices showing the supply of

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** M/s. Muniraj…
- **Respondents:** Intime Textile…; M/s. Intime…

## Timeline

- **2014-09-26 — Supply of Printing…**: The Operational Creditor started supplying…
- **2014-12-08 — Supply of Printing…**: The Operational Creditor completed the supply of printing chemicals to the Corporate…

## 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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