The case originates from an application filed by Saravana Distributors, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Scotts Garments Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for dyes and chemicals supplied between November 2015 and December 2016. A demand notice was issued, but the corporate debtor did not respond.
Saravana Distributors, the operational creditor, supplied dyes and chemicals to Scotts Garments Limited, the corporate debtor, between November 30, 2015, and December 31, 2016. The invoices for these supplies stipulated that payments were due within a certain number of days, with a 24% interest charge for payments made after 30 days from the invoice date. Scotts Garments Limited defaulted on payments, leading to an outstanding principal and interest amount of Rs. 11,95,865. Saravana Distributors issued a demand notice dated November 6, 2017, under Section 8 of the IBC, demanding payment of the outstanding amount along with interest. Scotts Garments Limited did not respond to the demand notice. Saravana Distributors then filed a company petition under Section 9 of the
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M/s Scotts Garments…
The Operational Creditor…
The case originates from an application filed by Saravana Distributors, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Scotts Garments Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for dyes and chemicals supplied between November 2015 and December 2016. A demand notice was issued, but the corporate debtor did not respond.
Saravana Distributors, the operational creditor, supplied dyes and chemicals to Scotts Garments Limited, the corporate debtor, between November 30, 2015, and December 31, 2016. The invoices for these supplies stipulated that payments were due within a certain number of days, with a 24% interest charge for payments made after 30 days from the invoice date. Scotts Garments Limited defaulted on payments, leading to an outstanding principal and interest amount of Rs. 11,95,865. Saravana Distributors issued a demand notice dated November 6, 2017, under Section 8 of the IBC, demanding payment of the outstanding amount along with interest. Scotts Garments Limited did not respond to the demand notice. Saravana Distributors then filed a company petition under Section 9 of the
…M/s Scotts Garments…
The Operational Creditor…