# In the matter of Siddarth Intercrafts Private Limited and Anothers Company Petition No. (IB)-05-JPR-2018

> NCLT judgment dated 2019-05-17. Citation: TCN-2019-NCLT-03277. M/S Avon Clothing Private Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 17 May 2019
- **Citation:** TCN-2019-NCLT-03277
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/siddarth-intercrafts-private-limited-and-anothers-company-petition-no-ib-05-jpr-0e06f313

## Summary

### Background

M/S Avon Clothing Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP) against M/S Siddarth Intercrafts Private Limited. The applicant claimed to have supplied grey cloth to the corporate debtor as per purchase orders placed during 2016 and raised various invoices. The corporate debtor admitted to the supply of fabrics and receiving the invoices but raised objections regarding the quality, quantity, and time schedule of supply, as well as technical objections regarding the application's completeness.

## Facts

M/S Avon Clothing Private Limited (the applicant/operational creditor) supplied grey cloth to M/S Siddarth Intercrafts Private Limited (the corporate debtor) based on purchase orders placed by the corporate debtor during 2016. The applicant raised various invoices from 14.09.2016 to 22.12.2016 for a total amount of Rs. 20,54,012/-. The applicant sent reminders and requested the corporate debtor to pay the dues. A notice under Section 8 of the Insolvency and Bankruptcy Code was issued on 06.04.2018 for Rs. 20,54,012/- along with interest totalling Rs. 23,74,952. The corporate debtor received the notice on 21.06.2018 but did not file a reply. The corporate debtor made part payments of Rs. 1,46,346/- and Rs. 2,11,685/- on 19/05/2018 and 08/06/2018, respectively, leaving a

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## Issues and analysis

### Issue 1: Whether the debt and default are …

**Ratio:** The Hon'ble Supreme Court in the matter of 'Mobilox Innovative Private Limited vs. Kirusa

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**Reasoning:** The corporate debtor admitted to the supply of goods and the invoices raised. The

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**Interpretation:** The existence of a genuine dispute is crucial for rejecting an application

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**Application:** The corporate debtor's admission of the supply of goods and the invoices,

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## Parties

- **Judges:** DEEPTI M…
- **Appellants:** M/S Avon Clothing…
- **Respondents:** M/S Siddarth…

## Timeline

- **2016-01-01 — Supply of Gre…**: M/S Avon Clothing Private Limited supplied grey cloth to M/S Siddarth Intercrafts Private…
- **2016-09-14 — Raising of I…**: M/S Avon Clothing Private Limited raised various invoices from 14.09.2016 to 22.12.2016…

## 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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