# 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-00885. The case involves an application filed by J.D. (India) Corporation, an operational creditor,…

- **Court:** NCLT
- **Order date:** 22 Oct 2019
- **Citation:** TCN-2019-NCLT-00885
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/naresh-retail-mart-llp-c-p-ib-no-223-kb-2016-6b0007fe

## Summary

### Background

The case involves an application filed by 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 Naresh Retail Mart LLP, the corporate debtor. J.D. (India) Corporation claimed that Naresh Retail Mart LLP owed them a debt related to the supply of ready-made garments. The operational creditor stated that the corporate debtor had issued cheques that were dishonored, and a demand notice was served, but no reply was received.

## Facts

J.D. (India) Corporation, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate a corporate insolvency resolution process against Naresh Retail Mart LLP, the corporate debtor. J.D. (India) Corporation is engaged in the business of ready-made garments and had been supplying garments to Naresh Retail Mart LLP since September 2017. The corporate debtor issued 8 cheques amounting to Rs. 34,89,073/- which were dishonored due to 'Funds Insufficient'. The operational creditor claimed a total outstanding amount of Rs. 44,75,578/-, including interest, as of November 2018. 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

…

## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

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

…

**Reasoning:** The court was satisfied that the operational creditor had presented sufficient evidence,

…

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

…

**Application:** The court applied Section 9 to the facts of the case, finding that the

…

## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** J.D. (INDIA)…
- **Respondents:** NARESH RETAIL…
- **Advocates:** Zeeshan…; SAKET CHA…

## Timeline

- **2017-09-01 — Business Relationship…**: J.D. (India) Corporation started supplying…
- **2018-11-01 — Debt Calcu…**: The outstanding amount, including interest, was calculated to be Rs. 44,75,578/- as 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/naresh-retail-mart-llp-c-p-ib-no-223-kb-2016-6b0007fe