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

> NCLT judgment dated 2019-09-16. Citation: TCN-2019-NCLT-01456. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 16 Sept 2019
- **Citation:** TCN-2019-NCLT-01456
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/intime-textile-limited-cp-781-ib-2018-983e0dce

## Summary

### Background

The case pertains to 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 claimed that the Corporate Debtor defaulted on payments for printing chemicals supplied between 26.09.2014 and 08.12.2014. The application sought initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

## Facts

Muniraj Colours Private Limited (Operational Creditor) supplied printing chemicals to Intime Textile Limited (Corporate Debtor) between 26.09.2014 and 08.12.2014, raising invoices for the same. The Corporate Debtor was required to make payments within 60 days of the invoice date. The Operational Creditor claimed Rs. 40,14,320/-, comprising Rs. 22,72,355/- as principal and Rs. 17,41,965/- as interest at 24% p.a. from the date of default. On 16.07.2016, the Corporate Debtor made a part payment of Rs. 13,537/-. The Corporate Debtor issued post-dated cheques for the remaining amount, which were dishonored. The Operational Creditor sent a demand notice dated 21.03.2018 under Section 8 of the I&B Code, 2016. The Corporate Debtor acknowledged a sum of Rs. 25,34,645/- as

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has fulfilled the requirements under Section 9 of the Insolvency …

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

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**Reasoning:** The court observed that the Operational Creditor had supplied printing chemicals to the

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if an operational debt exists,

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**Application:** The court applied the provisions of Section 9 to the facts of the case and

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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…**: Operational Creditor started supplying…
- **2014-12-08 — Supply of Printing…**: Operational Creditor supplied printing…

## 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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