# In the matter of Shirt Company (India) Private Limited C.P. (IB) 2534-MB-2019

> NCLT judgment dated 2020-02-26. Citation: TCN-2020-NCLT-01809. Himgiri Textiles filed a Company Petition under Section 8 & 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 26 Feb 2020
- **Citation:** TCN-2020-NCLT-01809
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shirt-company-india-private-limited-cp-ib-2534-mb-2019-58614981

## Summary

### Background

Himgiri Textiles filed a Company Petition under Section 8 & 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Shirt Company (India) Private Limited. The petition alleges that the Corporate Debtor defaulted on a payment of ₹84,31,461/- along with future interest at 24% p.a. The Petitioner, a proprietorship firm, supplied various types of fabrics to the Corporate Debtor, raising invoices worth ₹92,11,603/-. After deductions, a balance of ₹84,31,461/- remained unpaid.

## Facts

Himgiri Textiles, a proprietorship firm, supplied fabrics to Shirt Company (India) Private Limited, the Corporate Debtor. The total value of the invoices raised was ₹92,11,603/-. After deductions, a balance of ₹84,31,461/- remained unpaid. Himgiri Textiles issued a demand notice dated 2019-05-07 to the Corporate Debtor under Section 8 of the I&B Code, demanding payment of ₹84,31,461/- along with future interest at 24% p.a. The Corporate Debtor failed to respond to the demand notice. Himgiri Textiles annexed copies of purchase orders, invoices, delivery challans, dishonored cheques worth ₹8 lacs, ledger accounts for financial years 2016-2017, 2017-2018, and 2018-2019, and a letter from the bank to support its claim. The Corporate Debtor admitted liability during the

…

## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is in compliance with the provisions of …

**Ratio:** Section 8 and 9 of the Insolvency and Bankruptcy Code, 2016, outline the procedure for

…

**Reasoning:** The Bench was satisfied that the application filed by the Operational Creditor was in

…

**Interpretation:** Section 8 and 9 of the IBC are interpreted to mean that an operational creditor

…

**Application:** The court applied the provisions of Section 8 & 9 to the facts of the case,

…

## Parties

- **Judges:** SUCHITRAKAN…; Chandra Bha…
- **Appellants:** Himgiri Te…
- **Respondents:** Shirt Company…
- **Advocates:** Sumitra K…; Sumit P…; +1 more

## Timeline

- **2019-05-07 — Demand Notice…**: Himgiri Textiles issued a demand notice to Shirt Company (India) Private Limited under…
- **2019-07-03 — Petition…**: Himgiri Textiles filed the Company Petition seeking to initiate CIRP against Shirt…

## 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)

---

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/shirt-company-india-private-limited-cp-ib-2534-mb-2019-58614981