# In the matter of Kapuyt Clothing Private Limited C.P.(IB)No. 340-BB-2019

> NCLT judgment dated 2020-06-02. Citation: TCN-2020-NCLT-01264. M/s. Suryawanshi Garments LLP, the Operational Creditor, filed a Company Petition under Section…

- **Court:** NCLT
- **Order date:** 2 Jun 2020
- **Citation:** TCN-2020-NCLT-01264
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kapuyt-clothing-private-limited-cpibno-340-bb-2019-e81eb04c

## Summary

### Background

M/s. Suryawanshi Garments LLP, the Operational Creditor, filed a Company Petition under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Kapuyt Clothing Private Limited, the Corporate Debtor, due to a default in payment of Rs. 66,95,321/-. The Operational Creditor claimed to have supplied goods to the Corporate Debtor, raised invoices, and issued a demand notice, but received no payment or reply. The Corporate Debtor did not file any statement of objections or raise any dispute regarding the debt.

## Facts

M/s. Suryawanshi Garments LLP (Operational Creditor) filed a petition against M/s. Kapuyt Clothing Private Limited (Corporate Debtor) under Section 9 of the IBC, 2016, claiming a default of Rs. 66,95,321/-. Suryawanshi Garments LLP is a registered partnership involved in the sale and supply of fabrics, garments, and textile goods. Kapuyt Clothing Private Limited approached Suryawanshi Garments LLP for the supply of these goods, leading to purchase orders and subsequent delivery. Invoices were raised between 2018-02-17 and 2018-06-18. The Corporate Debtor admitted liability for the outstanding amount. A demand notice was issued on 2019-06-05 under Section 8 of the Code of 2016, but no reply was received. No payments were made by the Corporate Debtor, and no dispute was

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in …

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

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**Reasoning:** The Corporate Debtor failed to make any payments towards the outstanding debt and did not

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**Interpretation:** The absence of any dispute or denial by the Corporate Debtor regarding the debt

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**Application:** The facts show that the Corporate Debtor admitted its liability and failed to

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. Suryawanshi…
- **Respondents:** Kapuyt Clothing…

## Timeline

- **2018-02-17 — Invoice Perio…**: Operational Creditor started…
- **2018-06-18 — Invoice Per…**: Operational Creditor raised…

## 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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