Knitscraft Textile LLP (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ervika Global Private Limited (Corporate Debtor). The Operational Creditor claimed an outstanding operational debt of Rs. 1,65,47,709/- for the supply of garments, with no payment received after June 13, 2024. The Corporate Debtor disputed the claim, alleging the petition was a recovery proceeding, that the Operational Creditor failed to make agreed adjustments (2.5% of purchase order value and Rs.10 per piece for Myntra supplies), and that pre-existing disputes, including a criminal complaint, rendered the petition non-maintainable and the debt below the statutory threshold.

Knitscraft Textile LLP (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ervika Global Private Limited (Corporate Debtor). The Operational Creditor claimed an outstanding operational debt of Rs. 1,65,47,709/- for the supply of garments, with no payment received after June 13, 2024. The Corporate Debtor disputed the claim, alleging the petition was a recovery proceeding, that the Operational Creditor failed to make agreed adjustments (2.5% of purchase order value and Rs.10 per piece for Myntra supplies), and that pre-existing disputes, including a criminal complaint, rendered the petition non-maintainable and the debt below the statutory threshold.