# In the matter of Naresh Retail Mart LLP C. P. (IB) No. 223-KB-2016

> NCLT judgment dated 2019-10-22. Citation: TCN-2019-NCLT-00862. The case involves an application filed by M/s. J.D. (India) Corporation, an operational…

- **Court:** NCLT
- **Order date:** 22 Oct 2019
- **Citation:** TCN-2019-NCLT-00862
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/naresh-retail-mart-llp-c-p-ib-no-223-kb-2016-360be433

## Summary

### Background

The case involves an application filed by M/s. J.D. (India) Corporation, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate a corporate insolvency resolution process against M/s. Naresh Retail Mart LLP, the corporate debtor. The operational creditor claimed that the corporate debtor had defaulted on payments for ready-made garments supplied since September 2017. The corporate debtor initially acknowledged the debt but later failed to make payments, leading to dishonored cheques. The operational creditor issued a demand notice under Section 8 of the Code, but the corporate debtor did not respond. The corporate debtor did not appear before the tribunal after initial appearance.

## Facts

M/s. J.D. (India) Corporation, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate a corporate insolvency resolution process against M/s. Naresh Retail Mart LLP, the corporate debtor. The operational creditor supplied ready-made garments to the corporate debtor since September 2017, and invoices were raised for these supplies. The corporate debtor acknowledged the debt and issued eight cheques totaling Rs. 34,89,073/-, which were subsequently dishonored due to insufficient funds. The operational creditor claimed an outstanding amount of Rs. 37,69,893/- along with interest at 18% p.a., totaling Rs. 44,75,578/- as of November 2018. A demand notice under Section 8 of the Code was issued on December 5,

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The tribunal considered the documents and submissions made by the operational creditor

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** The tribunal applied Section 9 of the IBC to the facts of the case, noting that

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** M/S. J.D. (INDIA)…
- **Respondents:** M/S. NARESH…

## Timeline

- **2017-09-01 — Commencement o…**: The operational creditor started supplying…
- **2018-11-01 — Outstanding…**: The outstanding amount, including…

## 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)

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