# In the matter of Meyer Apparel Ltd. CP. No.13-14-Hry-2017

> NCLT judgment dated 2017-04-07. Citation: TCN-2017-NCLT-00920. The case involves applications under Section 9 of the Insolvency and Bankruptcy Code, 2016, to…

- **Court:** NCLT
- **Order date:** 7 Apr 2017
- **Citation:** TCN-2017-NCLT-00920
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/meyer-apparel-ltd-cp-no13-14-hry-2017-49c9177c

## Summary

### Background

The case involves applications under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the corporate insolvency resolution process against M/s Meyer Apparel Ltd. The operational creditor, M/s Surbhi Body Products (P) Limited, claims that the corporate debtor failed to make payments for goods supplied. The corporate debtor raised disputes regarding the quality of goods and claimed that a civil suit for recovery had been filed. The operational creditor contends that the disputes were raised as an afterthought to avoid payment and that the corporate debtor acknowledged the outstanding liability in its accounts.

## Facts

M/s Surbhi Body Products (P) Limited, the operational creditor, supplied interlining and lining trims to M/s Meyer Apparel Ltd., the corporate debtor. The corporate debtor issued purchase orders, including one dated 2014-03-11 for ₹2,13,500, stipulating payment within sixty days of delivery. The operational creditor supplied goods, which were accepted without dispute, and the corporate debtor acknowledged receipt on invoices. An invoice dated 2014-03-12 for ₹2,13,500 and another dated 2014-06-17 for ₹70 were issued. The corporate debtor failed to pay within the due date, and interest at 24% per annum was charged. The corporate debtor submitted a duly signed confirmation of accounts dated 2015-01-07, admitting a liability of ₹2,13,570.40. The operational creditor sent a

…

## Issues and analysis

### Issue 1: Whether there exists a dispute with regard to the liability to pay to the 'Operational Creditor' …

**Ratio:** Section 5(6) of the Insolvency and Bankruptcy Code defines 'dispute' to include a suit or

…

**Reasoning:** The court reasoned that the dispute regarding the quality of goods was raised belatedly,

…

**Interpretation:** The court interpreted the term 'dispute' in Section 5(6) of the Code to require

…

**Application:** The court applied the ratio to the facts of the case, finding that the dispute

…

## Parties

- **Judges:** R.P.Nag…; DeepaKr…
- **Appellants:** M/s Surbhi Body…
- **Respondents:** M/s. Meyer…

## Timeline

- **2014-03-11 — Purchase…**: Corporate Debtor issued purchase…
- **2015-01-07 — Confirmation of…**: Corporate Debtor submitted confirmation of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/meyer-apparel-ltd-cp-no13-14-hry-2017-49c9177c