# In the matter of S.R. Industries Ltd. CP (IB) No. 305-Chd-Pb-2019

> NCLT judgment dated 2021-03-05. Citation: TCN-2021-NCLT-02802. The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Mar 2021
- **Citation:** TCN-2021-NCLT-02802
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sr-industries-ltd-cp-ib-no-305-chd-pb-2019-b33e7dfc

## Summary

### Background

The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Sh. Jaspal Singh, proprietor of M/s Creative Arts (Operational Creditor/Petitioner), seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s S.R. Industries Ltd. (Corporate Debtor). The operational creditor claimed a default amount of ₹42,88,694/-. The Corporate Debtor, M/s S.R. Industries Limited, is a company incorporated on 19.07.1989. The Adjudicating Authority issued notices to the corporate debtor, granting them time to file a reply. Despite multiple opportunities, the corporate debtor failed to file a reply or pay the costs imposed by the court.

## Facts

Sh. Jaspal Singh, proprietor of M/s Creative Arts, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s S.R. Industries Ltd. The operational creditor is a manufacturer of footwear packaging boxes and supplied these to the corporate debtor from 2016-17 to 2018-19, amounting to ₹91,71,345/-. The corporate debtor's authorized share capital is ₹36,50,00,000, and the paid-up share capital is ₹34,24,57,000. A demand notice dated 02.05.2019 was served on the corporate debtor for an unpaid operational debt of ₹42,88,694/-, which became due on 31.03.2019. The corporate debtor replied to the demand notice on 07.05.2019, admitting the liability. The corporate debtor failed to comply with the demand notice and did not make any

…

## Issues and analysis

### Issue 1: Whether the demand notice in Form 3/4 …

**Ratio:** The demand notice must be served at the registered address of the corporate debtor to be

…

**Reasoning:** The court noted that the demand notice dated 02.05.2019 was sent to the address mentioned

…

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

…

**Application:** In this case, the demand notice was sent to the registered address of the

…

## Parties

- **Judges:** Ajay Kumar…; RAGHU N…; +1 more
- **Appellants:** Sh. Jaspal…
- **Respondents:** S.R. Industries…

## Timeline

- **1989-07-19 — Incorporation of…**: M/s S.R. Industries Limited was…
- **2016-01-01 — Supply of…**: The operational creditor supplied footwear packaging boxes to the corporate debtor from…

## Legal provisions

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

---

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/sr-industries-ltd-cp-ib-no-305-chd-pb-2019-b33e7dfc