# In the matter of Shree Hanuman Texfab Pvt. Ltd. CP(IB)-1625(MB)-2018

> NCLT judgment dated 2020-02-14. Citation: TCN-2020-NCLT-01936. The case involves a Company Petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 14 Feb 2020
- **Citation:** TCN-2020-NCLT-01936
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-hanuman-texfab-pvt-ltd-cpib-1625mb-2018-2a7c5540

## Summary

### Background

The case involves a Company Petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by J B Ecotex LLP (Operational Creditor) against Shree Hanuman Texfab Pvt Ltd (Corporate Debtor). The Operational Creditor claims that they supplied Polyester Staple Fibre to the Corporate Debtor, for which invoices were raised and acknowledged. The Corporate Debtor allegedly failed to make payments against these invoices, leading to the filing of the petition for initiation of CIRP.

## Facts

J B Ecotex LLP (Operational Creditor) supplied Polyester Staple Fibre to Shree Hanuman Texfab Pvt Ltd (Corporate Debtor). Invoices were raised for the supplied goods, and the Corporate Debtor acknowledged these invoices. The Operational Creditor claimed a total debt of Rs. 91,05,327.63, including Rs. 79,24,592 as per the ledger balance, Rs. 9,55,110.62 for 'C' forms not received, and Rs. 2,25,625 as probable penalty for 'C' form. The Corporate Debtor issued post-dated cheques, which were later dishonored. The Operational Creditor issued a demand notice in Form 3, but no payment or reply was received. The Corporate Debtor claimed that the goods supplied were of inferior quality and that blank cheques were misused. The Operational Creditor filed an affidavit stating that

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational …

**Ratio:** The petition under Section 9 of the IBC is maintainable if the operational debt exceeds

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**Reasoning:** The court considered the arguments presented by both parties and examined the documents,

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** In this case, the court found that the debt and default were established, and

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## Parties

- **Judges:** Smt Suchitra…; V. Nallasen…
- **Appellants:** JB Ecote…; J B Ecote…
- **Respondents:** Shree Hanuman…

## Timeline

- **2018-01-01 — CP(IB)1625(MB)/2018…**: Company Petition filed…
- **2018-11-01 — Affidavit-in-reply by…**: The Corporate Debtor filed an affidavit-in-reply stating that the Company petition is…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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