# In the matter of Shri Banke Bihari Cotfab Pvt. Ltd. (IB)-258(ND)2020

> NCLT judgment dated 2021-02-19. Citation: TCN-2021-NCLT-02992. The case involves a petition filed by Arora Vinyl Private Limited (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 19 Feb 2021
- **Citation:** TCN-2021-NCLT-02992
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shri-banke-bihari-cotfab-pvt-ltd-ib-258nd2020-43199595

## Summary

### Background

The case involves a petition filed by Arora Vinyl Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate the Corporate Insolvency process against Shri Banke Bihari Cotfab Pvt. Ltd. (Corporate Debtor). The Operational Creditor claims that the Corporate Debtor defaulted on payments for the supply of Coated Textile Fabrics, PVC Laminated Sheets, and other items. The last supply was made on 16.02.2018. A demand notice was sent on 16.12.2019, but service through registered post failed. However, the Operational Creditor claims service via email on 16.12.2019 and speed post on 17.12.2019.

## Facts

Arora Vinyl Pvt. Ltd. (Operational Creditor) filed a petition under Section 9 of the IBC against Shri Banke Bihari Cotfab Pvt. Ltd. (Corporate Debtor) for defaulting on payments for supplied goods. The Operational Creditor's total claim is Rs. 41,59,657/-, comprising a principal amount of Rs. 34,37,733.64/- and interest of Rs. 7,21,924/- at 18% per annum. The last supply was made on 16.02.2018. A demand notice was sent on 16.12.2019 via registered post, which failed. The Operational Creditor claims service via email on 16.12.2019 and speed post on 17.12.2019. The Corporate Debtor did not appear during the proceedings despite notice, leading to an ex-parte order on 12.02.2020. The Corporate Debtor is incorporated on 21.05.2013. The Operational Creditor submitted

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established a default in payment of the operational debt by …

**Ratio:** Section 9(5) of the IBC allows for the admission of a petition if the operational debt is

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**Reasoning:** The court considered the invoices, ledger accounts, and other documents submitted by the

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**Interpretation:** Section 9(5) requires the Adjudicating Authority to be satisfied that a debt

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**Application:** The court applied Section 9(5) to the facts presented by the Operational

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** Arora Vinyl Pvt.…
- **Respondents:** Banke Bihari…
- **Advocates:** Arvind…; Shubham…; +1 more

## Timeline

- **2018-02-16 — Last Sup…**: The last supply of Coated Textile Fabrics, PVC Laminated Sheets, and other items was made…
- **2019-12-16 — Demand Noti…**: The Operational Creditor sent a demand notice to the Corporate Debtor under Section 8 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)

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