# 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-00882. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Oct 2019
- **Citation:** TCN-2019-NCLT-00882
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/naresh-retail-mart-llp-c-p-ib-no-223-kb-2016-5550f978

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s. J.D. (India) Corporation, an operational creditor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) 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 creditor submitted that the corporate debtor had issued cheques amounting to Rs. 34,89,073 which were dishonored due to insufficient funds. A demand notice under Section 8 of the Code was issued on December 5, 2018, and delivered on December 10, 2018, but the corporate debtor did not respond.

## Facts

M/s. J.D. (India) Corporation, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Naresh Retail Mart LLP, the corporate debtor. The operational creditor supplied ready-made garments to the corporate debtor since September 2017, raising invoices for the supplies. The corporate debtor issued 8 cheques totaling Rs. 34,89,073/- in acknowledgment of the debt, but these cheques were dishonored due to insufficient funds. The operational creditor claimed a total outstanding amount of Rs. 44,75,578/- including interest until November 2018. A demand notice under Section 8 of the Code was issued on December 5, 2018, and delivered on December 10, 2018,

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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 court reviewed the documents submitted by the operational creditor, including

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** Based on the evidence presented, the court found that the operational creditor

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## Parties

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

## Timeline

- **2017-09-01 — Commencement of Garment…**: Operational Creditor started supplying…
- **2018-12-05 — Demand Notice…**: Operational Creditor issued a demand notice under Section 8 of the IBC to the Corporate…

## 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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