# In the matter of Sangeeta Tex Dyes Private Limited CP (IB) No.3071-MB-C-IV-2019

> NCLT judgment dated 2020-01-29. Citation: TCN-2020-NCLT-02142. The case involves a petition filed by Research Dye Chem Private Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 29 Jan 2020
- **Citation:** TCN-2020-NCLT-02142
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sangeeta-tex-dyes-private-limited-cp-ib-no3071-mb-c-iv-2019-d165f5fa

## Summary

### Background

The case involves a petition filed by Research Dye Chem Private Limited (Operational Creditor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sangeeta Tex Dyes Private Limited (Corporate Debtor) for failing to pay a sum of Rs. 55,10,292.00 as principal and Rs. 4,77,066.00 as interest as of June 30, 2019. The Operational Creditor supplied chemicals to the Corporate Debtor on various occasions, raising invoices that remained unpaid despite repeated reminders.

## Facts

Research Dye Chem Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Sangeeta Tex Dyes Private Limited (Corporate Debtor). The Corporate Debtor had approached the Operational Creditor for the supply of chemicals on various occasions. The Operational Creditor raised several invoices, which remained unpaid. The total debt due and payable to the Operational Creditor was Rs. 59,87,358.00, including principal and interest. The date of default was June 30, 2019. The Operational Creditor served a Demand Notice in Form 3 dated July 3, 2019, to the Corporate Debtor, but the Corporate Debtor did not reply. The Corporate Debtor's director admitted the liability during a hearing. The factory of the

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## Issues and analysis

### Issue 1: Whether the application made by the Operational Creditor is complete in all respects as required by …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6(1) of the

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**Reasoning:** The Adjudicating Authority examined the application and found that it met all the legal

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**Interpretation:** The completeness of the application is a prerequisite for the Adjudicating

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**Application:** The application was deemed complete because it contained all the necessary

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## Parties

- **Judges:** Rajasekha…; Ravikumar…; +1 more
- **Appellants:** Research Dye Chem…
- **Respondents:** Sangeeta Tex Dyes…

## Timeline

- **2019-06-30 — Date of D…**: The Corporate Debtor defaulted on payments with an outstanding amount of Rs. 55,10,292.00…
- **2019-07-03 — Demand Notice…**: The Operational Creditor served a Demand…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 2(20) — Application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-2)

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