# In the matter of Mayasheel India Retail Ltd. C.P.No.IB-2184(ND)-2019

> NCLT judgment dated 2020-03-17. Citation: TCN-2020-NCLT-01492. The application was filed by Jai Laxmi Traders, an operational creditor, to initiate CIRP…

- **Court:** NCLT
- **Order date:** 17 Mar 2020
- **Citation:** TCN-2020-NCLT-01492
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mayasheel-india-retail-ltd-cpnoib-2184nd-2019-71f4d456

## Summary

### Background

The application was filed by Jai Laxmi Traders, an operational creditor, to initiate CIRP against Mayasheel Retail India Ltd., the corporate debtor, for a defaulted amount of Rs. 21,27,034.75. Jai Laxmi Traders supplied hosiery garments and apparels to Mayasheel Retail India Ltd. based on written/verbal orders. The corporate debtor made random payments, but a significant amount remained overdue. The operational creditor sent a legal notice and a statutory demand notice, but the corporate debtor failed to pay the outstanding amount. The corporate debtor claimed a settlement was reached through WhatsApp messages with Arun Somani, but the operational creditor denied this.

## Facts

Jai Laxmi Traders, an operational creditor, filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against Mayasheel Retail India Ltd., a corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed a default of Rs. 21,27,034.75. The operational creditor supplied hosiery garments and apparels to the corporate debtor based on orders. The corporate debtor made payments randomly, but a significant amount remained unpaid. The operational creditor sent a legal notice dated 29.07.2019 and a statutory demand notice dated 06.08.2019, which were not replied to by the corporate debtor. The corporate debtor argued that a settlement was reached through WhatsApp messages with Arun Somani, and the amount was

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor is maintainable under Section 9 of the …

**Ratio:** Section 9 of the IBC allows an operational creditor to file an application for initiating

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**Reasoning:** The court found that the operational creditor had served a demand notice as required

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**Interpretation:** Section 9 provides the mechanism for an operational creditor to initiate CIRP

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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:** ABNI RANJAN KUMAR…; V.K. SUB…
- **Appellants:** M/s Jai Laxmi…
- **Respondents:** Mayasheel Retail…; M/s. Mayasheel…

## Timeline

- **2019-07-29 — Legal No…**: Operational creditor sent a legal notice to…
- **2019-08-06 — Statutory Dema…**: Operational creditor sent a statutory demand notice to the corporate debtor under the IB…

## 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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