# In the matter of Shristi Plywood Pvt. Ltd. CP (IB) No.302-Chd-Hry-2019

> NCLT judgment dated 2019-11-21. Citation: TCN-2019-NCLT-00511. Calzini Fashions Limited, an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 21 Nov 2019
- **Citation:** TCN-2019-NCLT-00511
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shristi-plywood-pvt-ltd-cp-ib-no302-chd-hry-2019-7749fb7d

## Summary

### Background

Calzini Fashions Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Shristi Plywood Pvt. Ltd., the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP) due to unpaid operational debt. The operational creditor claimed that the corporate debtor defaulted on payments for supplied fabric and garments, leading to a total unpaid debt of ₹3,16,057.25/- as of 22.03.2018. The corporate debtor acknowledged the debt but failed to make the payment despite reminders and a demand notice.

## Facts

Calzini Fashions Limited (Operational Creditor) supplied fabric and garments to Shristi Plywood Pvt. Ltd. (Corporate Debtor) based on purchase orders. In March 2018, Calzini Fashions honored the orders and supplied the materials, raising several invoices. The Corporate Debtor defaulted on payments, leading to an unpaid operational debt of ₹3,16,057.25/- as of 22.03.2018. This amount includes a partial payment default of ₹39,697.25/- against Invoice No.CFDL/17-18/0256 dated 17.03.2018 and full payment default of ₹2,76,360.00/- against Invoice No.CFDL/17-18/0258 dated 22.03.2018. The Operational Creditor sent a demand notice on 25.03.2019, but the Corporate Debtor did not reply or dispute the debt. The Corporate Debtor acknowledged the debt in a letter dated 03.01.2019,

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## Issues and analysis

### Issue 1: Whether the demand notice in Form No.3 …

**Ratio:** The demand notice must be served to the correct address of the corporate debtor as per

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**Reasoning:** The demand notice was sent to the address as per the master data at Page No.46 of the

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**Interpretation:** Proper service of the demand notice is a prerequisite for initiating CIRP under

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**Application:** The court found that the demand notice was sent to the correct address, and the

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Calzini Fashions…
- **Respondents:** Shristi Plywood…
- **Advocates:** Vipul J…; Vibhu Agn…

## Timeline

- **2018-03-01 — Supply of Fabric and…**: Calzini Fashions Limited supplied fabric and garments to Shristi Plywood Pvt. Ltd. based…
- **2018-03-22 — Default on…**: Shristi Plywood Pvt. Ltd. defaulted on payments, leading to an unpaid operational debt 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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